What is a duty to defend clause?

A duty to defend clause is a legal term that is included in many types of insurance policies. It essentially requires the insurance company to actively defend its policyholders against any claims made against them. This type of clause is particularly important in areas like Arizona where the legal system can be unpredictable and litigious. Under a duty to defend clause, the insurer is obligated to pay the legal costs of defending a policyholder against any and all claims that could be covered by the policy. This includes paying the legal fees and any expenses related to the defense. Typically, the insurer will also have to pay for any damages and judgements that are awarded against the policyholder, up to the limit of the policy. In some cases, the duty to defend clause can also provide protection for the policyholder even if the claim is not technically covered by the policy. This is because the insurer is still obligated to provide a defense and cover the legal costs of that defense. The duty to defend clause is an important part of insurance policies in Arizona and other states. It helps protect policyholders from unexpected legal costs and provides a peace of mind that their insurance company will step in and provide assistance in the event of a legal dispute.

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