Cooperation Clause: Can my insurance company force me to settle?

Clients are usually surprised to learn that their commercial general liability insurance policy contains a “cooperation clause” that requires them to cooperate with their insurance company. Many are unhappy with the idea that they must cooperate with an insurance company that has sent them a reservation of rights letter describing multiple reasons why no coverage is owed for the lawsuit filed against them, despite large premiums they have dutifully paid for years.