Insurance generally refers to a legally enforceable contract—known as an insurance policy—in which an insurance company (the insurer) agrees to (1) defend the person or entity who purchased the policy (the insured) against future claims or lawsuits; and (2) pay for losses (usually financial) that are covered under the written terms of the insurance policy.

These two primary legal obligations of an insurer under a liability insurance policy are known as the duty to defend and the duty to indemnify.

Insurance may be purchased to cover a wide range of future claims or losses—ranging from health insurance to pay future medical expenses, to commercial general liability (CGL) to cover future claims and losses incurred by a business.

In Connecticut, insurance is regulated by both state and federal laws. The Connecticut Insurance Department oversees the insurance industry within the state, ensuring compliance with state statutes and regulations. Insurance policies in Connecticut are contracts between the insurer and the insured, where the insurer has the duty to defend the insured against claims or lawsuits and the duty to indemnify, or compensate, for covered losses as specified in the policy. These obligations are fundamental to liability insurance policies, such as commercial general liability (CGL) insurance, which businesses often purchase to protect against potential claims. Various types of insurance are available to cover different risks, including health insurance for medical expenses, auto insurance for vehicle-related incidents, homeowners insurance for property and liability coverage, and many others. Policyholders in Connecticut are protected under state law, which dictates the terms and conditions insurers must follow and provides mechanisms for dispute resolution between insured parties and insurers.