Insurance Law: Strategies For Seeking Pre-Litigation Coverage

Most liability insurance policies contain two promises to the policyholder. The first is the insurer's promise to pay for the policyholder's legal liability — the duty to indemnify. The second is the insurer's promise to defend the policyholder against a covered suit — the duty to defend. When a policyholder is faced with a claim by a third party, the insurer must pay the costs of defending the lawsuit as well as any resulting judgment against the policyholder.

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