Common use of LIABILITY COVERAGE INSURING AGREEMENT Clause in Contracts

LIABILITY COVERAGE INSURING AGREEMENT. If “you” paid the premium for Liability Coverage, “we” will pay damages, other than punitive damages, exemplary damages or restitution orders; for “bodily injury” or “property damage” for which any “covered person” becomes legally responsible because of an auto “accident.” Damages include prejudgment interest and any court costs awarded or taxed against the “covered person.” “We” have the right to investigate and defend against any claim or suit for damages within the coverage provided by this policy; and the right to negotiate and settle any claim or suit within the coverage and liability limit of this policy. Additional Definitions When used in this Part: