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 Georgia, insurance is regulated by state statutes and overseen by the Georgia Department of Insurance. The legal framework ensures that insurance policies are enforceable contracts where the insurer has two main obligations: the duty to defend and the duty to indemnify the insured. The duty to defend obligates the insurer to provide legal defense to the insured against claims or lawsuits that fall within the scope of the policy coverage. The duty to indemnify means the insurer must pay for the losses or damages covered by the policy, up to the policy limits. Insurance policies can cover various risks, including health insurance for medical expenses and commercial general liability (CGL) insurance for business-related claims and losses. Insurers in Georgia must comply with the regulations set forth in the Official Code of Georgia Annotated (O.C.G.A.) and are subject to the oversight of the state's insurance commissioner to ensure they meet their contractual obligations to policyholders.