What is a duty to defend clause?

A duty to defend clause is a clause in an insurance policy that requires the insurance company to provide a defense to a policyholder if they are sued over a covered claim. This is in contrast to a duty to indemnify clause, which requires the insurance company to pay for any losses or damages that arise from a covered claim. In Tennessee, a duty to defend clause is only triggered when all elements of coverage are met, including the scope of the coverage and the amount of the claim. This means the insurer must take into account the facts of the case before deciding whether or not to provide a defense. The duty to defend clause also extends to legal costs that may occur in defending the case, including attorney fees and other costs related to the defense. The insurer can also use the duty to defend clause to settle the case before it goes to trial, avoiding costly litigation.

Related FAQs

What steps are involved in the insurance claim process?
How is an insurance claim investigated?
How do I understand an insurance policy?
Can an insurance company deny a claim?
What is the difference between a claim and an appeal?
What is a breach of fiduciary duty claim?
What is the difference between an insurance policy and a benefit?
What is a limitation of coverage?
How do I negotiate a settlement with an insurance company?
What information do I need to provide when filing an insurance claim?

What is a duty to defend clause?

Related FAQs

Related Blog Posts