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🛡️ '''Duty to defend''' is the obligation of a [[Definition:Liability insurance | liability insurer]] to provide and fund a legal defense for its [[Definition:Insured | insured]] when a [[Definition:Third-party claim | third-party claim]] or [[Definition:Lawsuit | lawsuit]] alleges facts that could potentially fall within the scope of the [[Definition:Insurance policy | policy's]] coverage. This duty is distinct from — and broader than — the [[Definition:Duty to indemnify | duty to indemnify]]: an insurer may be required to defend a suit even if the claim ultimately turns out not to be covered, so long as the allegations, taken at face value, raise the possibility of a covered [[Definition:Loss | loss]].

📜 Whether the duty is triggered is typically determined by comparing the allegations in the [[Definition:Complaint | complaint]] (or equivalent pleading) against the [[Definition:Insuring agreement | insuring agreement]], [[Definition:Policy exclusion | exclusions]], and [[Definition:Policy condition | conditions]] of the policy. Most jurisdictions follow the "four corners" or "eight corners" rule — looking only at the complaint and the policy — though some allow the insurer to consider extrinsic evidence. Once triggered, the insurer usually selects and pays [[Definition:Defense counsel | defense counsel]], controls the litigation strategy (subject to ethical constraints), and bears all defense costs. In many policy forms, defense costs are paid in addition to the [[Definition:Policy limit | policy limits]], though [[Definition:Claims-made policy | claims-made]] and certain [[Definition:Professional liability insurance | professional liability]] policies may erode limits with defense spending.

⚠️ Failing to honor the duty to defend carries severe consequences. Courts in many jurisdictions hold that an insurer that wrongfully refuses to defend is [[Definition:Estoppel | estopped]] from later denying coverage — effectively converting a questionable claim into a fully covered one. This exposure makes duty-to-defend determinations among the highest-stakes decisions in [[Definition:Claims handling | claims handling]]. Carriers invest heavily in coverage-opinion workflows, and [[Definition:Claims adjuster | claims professionals]] must navigate tensions between controlling defense costs and preserving the insured's right to a competent defense. In [[Definition:Commercial lines | commercial]] and [[Definition:Specialty insurance | specialty lines]], disputes over this duty generate substantial [[Definition:Coverage litigation | coverage litigation]] and shape the dynamics of [[Definition:Settlement | settlement]] negotiations.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Duty to indemnify]]
* [[Definition:Liability insurance]]
* [[Definition:Policy exclusion]]
* [[Definition:Claims-made policy]]
* [[Definition:Coverage litigation]]
* [[Definition:Reservation of rights]]
{{Div col end}}

Definition:Duty to defend - Revision history

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