Duty to defend refers to an insurance company’s (insurer’s) obligation to defend a claim or lawsuit when the claim(s) asserted against the insured (policyholder) may be covered by the insurance policy.

The duty to defend is one of the insurer’s primary duties under most liability insurance policies, and an insured generally only needs to show there is some possibility of coverage for the claim(s) asserted against the insured to trigger the insurer’s duty to defend.

Therefore, the duty to defend against the claim(s) may exist even when coverage for losses or damages is in doubt and a court ultimately determines there is no coverage under the policy. And an insurer may owe a duty to defend its insured against a claim for which there are ultimately no damages awarded.

The duty to defend is determined by (1) the terms of the insured's insurance policy and (2) the facts as pleaded (stated in a lawsuit) by the claimant.

Any doubt as to whether the claims made against the insured create a duty to defend is usually resolved in favor of the insured, requiring the insurer to defend against the claims. Insurance coverage and claims issues are often complex and an insured is usually well-served by promptly discussing these matters with an experienced insurance coverage lawyer.

In New Jersey, the duty to defend is a fundamental obligation of an insurance company to provide a defense for its policyholder when the claims made against them could potentially be covered by the insurance policy. This duty is broad and is typically triggered if there is any possibility that the claim falls within the policy's coverage, even if there is doubt about the actual coverage or if the court later finds that the policy does not cover the damages. The determination of the duty to defend is based on the language of the insurance policy and the allegations in the complaint. New Jersey courts generally interpret the duty to defend broadly, resolving any uncertainties in favor of the insured. This means that if the claims against the insured could potentially require the insurer to indemnify the policyholder, the insurer must defend the claim. Policyholders facing such claims should consult with an experienced attorney to navigate the complexities of insurance coverage and ensure their rights are protected.