Duty to defend refers to an insurance company’s (insurer’s) obligation to defend a claim or lawsuit when the claim(s) asserted against the insured (policyholder) may be covered by the insurance policy.
The duty to defend is one of the insurer’s primary duties under most liability insurance policies, and an insured generally only needs to show there is some possibility of coverage for the claim(s) asserted against the insured to trigger the insurer’s duty to defend.
Therefore, the duty to defend against the claim(s) may exist even when coverage for losses or damages is in doubt and a court ultimately determines there is no coverage under the policy. And an insurer may owe a duty to defend its insured against a claim for which there are ultimately no damages awarded.
The duty to defend is determined by (1) the terms of the insured's insurance policy and (2) the facts as pleaded (stated in a lawsuit) by the claimant.
Any doubt as to whether the claims made against the insured create a duty to defend is usually resolved in favor of the insured, requiring the insurer to defend against the claims. Insurance coverage and claims issues are often complex and an insured is usually well-served by promptly discussing these matters with an experienced insurance coverage lawyer.
In Texas, the duty to defend is a legal obligation of an insurance company to provide a defense for its policyholder when the policyholder is sued, and the lawsuit presents claims that could potentially be covered by the insurance policy. This duty is broad, and the insurer must defend the entire lawsuit if even one claim is potentially covered. The determination of whether an insurer has a duty to defend is made by comparing the allegations in the complaint with the insurance policy's coverage. If there is any doubt about whether the facts give rise to a duty to defend, Texas law generally resolves the uncertainty in favor of the insured, meaning the insurer must provide a defense. This duty can exist even if the insurer disputes the claim's validity or if the court later finds that the policy does not cover the damages. Policyholders in Texas facing a lawsuit that may trigger their insurance coverage should consult with an attorney experienced in insurance law to ensure their rights are protected and to navigate the complexities of insurance coverage and defense obligations.
