Duty to indemnify refers to an insurance company’s (insurer’s) obligation to indemnify the insured against any loss or damage when the claim(s) asserted against the insured (policyholder) may be covered by a liability insurance policy—which is a policy that may cover claims for personal injury and property damage suffered by third parties.

The duty to indemnify is one of the insurer’s primary duties under most liability insurance policies but is narrower than the duty to defend the insured. The duty to indemnify the insured generally arises at a later date when the liability of the insured is established and a review of the facts developed during the litigation or claims investigation process must be examined to determine if they fall within the insurer’s indemnification obligations under the insurance policy.

In Utah, the duty to indemnify is a legal obligation of an insurance company to cover the financial costs of a claim against the insured party when such a claim is found to be within the scope of the insurance policy's coverage. This duty is typically outlined in liability insurance policies, which may include coverage for third-party personal injury and property damage claims. The duty to indemnify is distinct from the insurer's duty to defend, as it only arises after the insured's liability has been established, either through a court judgment or a settlement that falls within the policy's coverage terms. Utah courts will interpret the insurance policy and the facts of the case to determine whether the insurer is required to indemnify the insured. The insurer's obligation to indemnify is contingent upon the claim being one that is covered by the policy, and it does not extend to claims that are excluded from coverage.