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 New York, insurance is regulated by both state and federal laws. The New York State Department of Financial Services oversees the insurance industry, ensuring compliance with state statutes and regulations. Insurance policies in New York are contracts between the insurer and the insured, where the insurer has two main obligations: the duty to defend and the duty to indemnify. 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. These policies can range from health insurance, which covers medical expenses, to commercial general liability (CGL) insurance, which covers a business's potential legal liabilities. It's important for policyholders to understand the specific terms and coverage limits of their insurance policies, as these will determine the extent of the insurer's duties. An attorney can provide guidance on the interpretation of insurance contracts and the applicability of coverage in the event of a claim.