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 Kansas, as in other states, insurance is regulated by state law. The Kansas Insurance Department oversees the insurance industry to ensure compliance with state statutes and regulations. Insurance policies in Kansas 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 pay for, covered losses as specified in the policy. These obligations are fundamental to liability insurance policies, including commercial general liability (CGL) policies. Various types of insurance are available to cover potential future claims or losses, such as health insurance for medical expenses and CGL for business-related liabilities. Insurers must act in good faith and adhere to the terms of the insurance contract, and policyholders are protected under Kansas law from unfair or deceptive practices by insurers.