Duty to Defend
Most people know that an insurance company must reimburse (indemnify) them if a covered claim is presented against them. But most people do not realize the other corresponding duty that a liability insurance policy imposes on the carrier – the duty to defend.
The duty to defend can be more valuable than the duty to indemnify since the cost of defense, especially in complicated business cases, may exceed the verdict. Insurers know this, and do their best to skirt the duty to defend whenever they can. They issue reservation of rights letters that set forth the reasons for their refusal, and, if unchallenged, the insurer's disregard of its duty to defend can have a significant detrimental effect on an insured's ability to continue the litigation.
How many people or companies have an unlimited purse to pay defense costs, even when their position is justifiable?
Rutter & Russin knows how to make insurers live up to their responsibility to defend their insureds. Bob Rutter has lectured and written an article about the duty to defend. Click here for a copy of the article. Click here for a sample of representative cases involving the duty to defend.