Defense inside the limits means attorney fees, experts, and defense expenses erode your liability limit, leaving less available for settlement or judgment if a case is costly to defend.
Defense outside the limits means legal expenses are paid in addition to your liability limit, providing stronger protection in high-severity or complex litigation.
Understanding covered vs. uncovered costs is critical. Policies may exclude certain regulatory fines, punitive damages, or non-malpractice legal issues (criminal matters, some EMTALA or HIPAA penalties), so knowing exactly what is treated as defense vs. indemnity matters.
How Liberty optimizes your coverage structure: Liberty reviews your policy forms to clarify how defense is handled, identifies gaps, and negotiates structures — such as defense outside limits, consent-to-settle language, and separate sublimits — that fit your risk profile and board’s risk tolerance.