Common use of Forgery or Alteration Clause in Contracts

Forgery or Alteration. a. The Insurer shall pay for loss resulting directly from Forgery or alteration of checks, drafts, promissory notes, or similar written promises, orders or directions to pay a sum certain in Money that are: (i) made or drawn by or upon the Insured; or (ii) made or drawn by one acting as an agent of the Insured; or that purport to have been so made or drawn. b. If the Insured is sued for refusing to pay any instrument covered in paragraph 2.a. above on the basis that it has been forged or altered, and the Insured has the Insurer’s written consent to defend against the suit, the Insurer shall pay for any reasonable legal expenses that the Insured incurs and pays in that defense. The amount that the Insurer shall pay for such legal expenses is in addition to the Limit of Liability applicable to this Insuring Agreement.

Appears in 2 contracts

Sources: Commercial Crime Coverage Part, Commercial Crime Coverage Part