Is an insurer obliged to defend its insured for all damages claimed, even if certain types of damages are excluded from the policy?
December 1, 2023
When an insured claims compensation, the mere possibility that the claim falls within the scope of the policy triggers an obligation, on the part of the insurer, to defend the insured in a litigation dispute.1 However, some claims may involve damages that are not covered, while others are. In this specific case, must the insurer assume the defence costs associated with all claimed items, or can it exclude those incurred for non-covered damages?