Phenomenal Florists is sued for injuries sustained by a customer who was seriously injured in the shop while buying flowers. The claim was settled for $100,000, the limit of liability in Phenomenal's businessowners policy. Legal expenses to defend it totaled $50,000. Since the limit of liability was exhausted in the settlement, must Phenomenal reimburse the insurer for the legal expenses?
A. Yes. The $50,000 for legal expenses or defense costs is subject to the limit of liability, which was exhausted by the settlement.
B. No. Defense costs are paid in addition to the limit of liability.
C. Yes. The businessowners policy does not cover the cost of defense.
D. No. The insurer would rather pay the defense costs to manage the litigation.