hammer clause
n.— «Many insurance policies have what is known as a “hammer” clause, meaning that the insurer can force the insured to accept a settlement of the claim, unless the insured is willing to forego coverage or accept reduced coverage. A “hammer” clause can be particularly problematic for publishers, who may wish to continue to fight a lawsuit based on First Amendment or other journalistic principles even when pure economics would dictate a settlement.» —“Online Publishing Risks Create Need for Libel Insurance” by Michael Rothberg Online Journalism Review Feb. 20, 2004. (source: Double-Tongued Dictionary)
Further reading
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