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 Maine, insurance is regulated by state statutes and overseen by the Maine Bureau of Insurance. 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 insurance policy's coverage. The duty to indemnify means the insurer must pay for any covered losses or damages incurred by the insured. Insurance policies in Maine can cover various risks, including health, property, auto, and commercial general liability (CGL), among others. Each type of insurance is subject to specific regulations that dictate the terms of coverage, exclusions, and the insurer's obligations. Insurers in Maine must operate in compliance with the Maine Insurance Code, which sets forth the standards for policy language, consumer protections, and the conduct of insurers. It's important for policyholders to understand the terms of their insurance contracts and for insurers to adhere to their legal obligations under those contracts.