Duty to defend

{
  "id": "MLC-T-INS-001234",
  "term": "Duty to defend",
  "field": "Insurance and risk management",
  "definition": "An insurer's contractual obligation to provide legal representation and cover defense costs for an insured party when a lawsuit or claim alleges damages that fall within the scope of the policy's coverage. This duty typically arises even if the allegations are groundless, false, or fraudulent, as long as there is a potential for coverage. The duty to defend is broader than the duty to indemnify, which only requires payment for covered losses.",
  "url": "https://mlchart.com/terminology/insurance/duty-to-defend/"
}