Common use of Defense Coverage Clause in Contracts

Defense Coverage. 1. If a claim is made or a suit is brought against an "insured" for damages because of "bodily injury" or "property damage" caused by an "occurrence" or "personal in- jury" caused by an offense to which this pol- icy applies, we: a. Will provide a defense at our expense by counsel of our choice, even if the suit is groundless, false or fraudulent. How- ever, we are not obligated to defend any suit or settle any claim if: (1) The "occurrence" or offense is cov- ered by other "underlying insurance" available to the "insured"; or (2) There is no applicable "underlying insurance" in effect at the time of the "occurrence" or offense and the amount of damages claimed or in- curred is less than the applicable deductible amount shown in the Dec- larations. b. May join, at our expense, with the "in- sured" or any insurer providing "underly- ing insurance" in the investigation, de- fense or settlement of any claim or suit which we believe may require payment under this policy. c. Will pay any expense incurred for the "insured's" defense, with our written consent, in any country where we are prevented from defending an "insured" because of laws or other reasons. 2. We may investigate and settle any claim or suit that we decide is appropriate. Our duty to settle or defend ends when our limit of li- ability for the "occurrence" or offense has been exhausted by payment of judgments or settlements.