The duty to defend attaches on potential coverage rather than actual coverage, so an insurer may be obligated to defend a suit it will owe nothing on. A single potentially covered allegation among many uncovered ones triggers the full defense obligation.
The duty ends only when it becomes clear no covered claim remains.
Alternative Names:
Defense Broader Than Indemnity
Why it Matters?
This principle explains why insurers defend cases they expect to win on coverage, and why partial coverage produces a full defense rather than a proportional one. Some jurisdictions permit the insurer to seek allocation of defense costs attributable solely to uncovered claims, but the entitlement to reimbursement varies sharply and depends on whether the reservation expressly preserved it.
Frequently Confused with
Related terms
Frequently asked questions
Must an insurer defend a suit with mostly uncovered claims?
Can defense costs for uncovered claims be recouped?
