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 Massachusetts, insurance is regulated by both state and federal laws. The Massachusetts Division of Insurance oversees the insurance industry within the state, ensuring that insurance policies comply with state statutes and regulations. The duty to defend and the duty to indemnify are fundamental obligations of insurers under liability insurance policies in Massachusetts. The duty to defend requires 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. Insurance policies can vary widely, including health insurance, commercial general liability (CGL), auto insurance, and homeowners insurance, among others. Each type of insurance is subject to specific regulations that dictate the terms of coverage, exclusions, and the insurer's obligations. It is important for policyholders to understand the terms of their insurance contracts and for insurers to act in accordance with both the policy provisions and applicable laws. In cases of disputes or denial of coverage, policyholders may seek legal advice from an attorney to resolve the issue.