What is a duty to defend clause?

A duty to defend clause is a legal requirement in insurance claims law in Hawaii that stipulates an insurance company must take on full responsibility for defending a policy holder against a lawsuit that is related to a claim made under the policy. This means that the insurance company is required to pay for any legal costs and damages if the policy holder is found liable in court. This clause ensures that policy holders are not left paying for legal expenses if the insurance company fails to fulfill its obligations. The duty to defend clause is beneficial to policy holders because it gives them the freedom to choose their own lawyer, instead of relying on the cheaper services of the insurance company’s lawyer. It also helps to keep insurance costs down for policy holders as they do not have to bear the entire cost of an expensive trial should a dispute arise. Furthermore, the duty to defend clause provides the policy holder with a better measure of protection against any potential legal action.

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What is a duty to defend clause?

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