Duty to Defend
The insurer's obligation to provide legal defense for the insured against covered claims, which is broader than the duty to indemnify and is triggered by the allegations in a lawsuit, not the actual facts.
Overview
The Duty to Defend is one of two fundamental obligations an insurer owes its policyholders — the other being the duty to indemnify (pay claims). The duty to defend is triggered when a lawsuit's allegations potentially fall within the policy's coverage, even if the actual facts later prove the claim is not covered.
Why It Matters
Defense costs in liability lawsuits can reach six or seven figures before a case even goes to trial. When you are an Additional Insured on a vendor's policy, the duty to defend means the vendor's insurer must provide you with legal representation if you are sued for claims arising from the vendor's work.
Key Distinction
In most CGL policies, defense costs are paid in addition to the policy limits — they do not erode coverage. However, in some Umbrella or Excess policies, defense costs are included within limits. This distinction matters when evaluating whether a vendor's coverage is truly adequate for your exposure.
See how Inori handles duty to defend
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