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 Idaho, insurance is regulated by both state statutes and federal law. The Idaho Department of Insurance oversees the enforcement of state insurance laws and regulations. Insurance policies in Idaho are contracts between the insurer and the insured, and they are subject to general contract law principles as well as specific insurance statutes. 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 requires the insurer to pay for any covered losses or damages incurred by the insured. Insurance coverage can vary widely, including policies like health insurance for medical expenses and commercial general liability (CGL) insurance for business-related claims and losses. It is important for policyholders to understand the specific terms and coverage limits of their insurance policies, and they may consult with an attorney for guidance on insurance matters.