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The Hammer Clause. Called by some insurance companies âThe Cooperation Clause,â the hammer clause in a professional liability policy is something you should be aware of. The hammer clause is a provision included in many policies that gives the insurance company more control in a claim than you may be comfortable with. It is best described by example:
For a personalized walk-through of IRMI Online, Request a Demo. betterment clause. A provision, often found in the physical damage section of automobile insurance policies, which stipulates that if the repair or replacement of the damaged parts results in better than like kind or quality, the insurers will not pay for this net improvement.