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📋 '''Duty''' in insurance law refers to a legal or contractual obligation that one party owes to another, and it underpins much of how [[Definition:Insurance policy | policies]] are formed, [[Definition:Claims management | claims]] are handled, and coverage disputes are resolved. The term appears across multiple contexts: the [[Definition:Policyholder | policyholder's]] duty of [[Definition:Utmost good faith | utmost good faith]] at the time of application, the insurer's [[Definition:Duty to defend | duty to defend]] and [[Definition:Duty to indemnify | duty to indemnify]] under [[Definition:Liability insurance | liability policies]], and the [[Definition:Insurance broker | broker's]] duty of care when advising clients on coverage. Because insurance is fundamentally a promise-based product, the duties attached to that promise define the rights and remedies available when something goes wrong.

⚙️ How a specific duty operates depends on its source — statute, common law, or the policy contract itself. Under most [[Definition:Commercial general liability (CGL) | CGL]] policies, for example, an insurer's duty to defend is triggered whenever a [[Definition:Complaint | complaint]] alleges facts that could potentially fall within coverage, even if the allegations later prove groundless. This standard is deliberately broad and typically survives until every covered claim has been resolved. On the policyholder's side, the [[Definition:Duty of disclosure | duty of disclosure]] requires material facts about the risk to be shared with the [[Definition:Underwriter | underwriter]] before [[Definition:Binding | binding]]; failure to do so can give the insurer grounds to [[Definition:Rescission | rescind]] the policy or deny a [[Definition:Claim | claim]].

🔑 Understanding where duties begin and end is one of the most consequential aspects of insurance practice. Disputes over the scope of the duty to defend alone generate a substantial share of [[Definition:Coverage litigation | coverage litigation]] in the United States, and the outcomes often determine whether a policyholder receives tens of millions of dollars in defense costs or bears them alone. For [[Definition:Insurtech | insurtech]] platforms and [[Definition:Managing general agent (MGA) | MGAs]] designing new products, clearly articulating duties in plain language — rather than relying on legacy [[Definition:Policy form | policy-form]] boilerplate — can reduce ambiguity, cut [[Definition:Loss adjustment expense (LAE) | loss adjustment expenses]], and build [[Definition:Policyholder | policyholder]] trust.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Duty to defend]]
* [[Definition:Duty to indemnify]]
* [[Definition:Duty of disclosure]]
* [[Definition:Utmost good faith]]
* [[Definition:Breach of contract]]
* [[Definition:Standard of care]]
{{Div col end}}

Definition:Duty - Revision history

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