A liability policy clause indemnifying the insured against his own defence costs if incurred with the insurer’s consent. These costs are borne by the insurer in addition to damages and claimants’ costs tha are subject to the specified limit of indemnity. The legal costs form a part of the indemnity limit only if the limit is costs inclusive.
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The extension of a liability insurance to provide for the payment of the insured’s legal costs in litigation other than the defence of the insured against claims arising under the liability insurance (which costs are commonly covered by the insurance in any event).