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 Minnesota, insurance is regulated by both state statutes and federal law. The Minnesota Department of Commerce oversees the insurance industry, ensuring compliance with state laws and regulations. Insurance policies in Minnesota 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, which means paying for losses as specified in the insurance policy. These policies can cover various risks, including health insurance for medical expenses and commercial general liability (CGL) for business-related claims and losses. Minnesota law requires certain types of insurance, such as automobile liability insurance, and sets standards for policy provisions, consumer protections, and the conduct of insurers. It's 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-related legal matters.