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 Washington State, insurance is regulated by the Washington State Office of the Insurance Commissioner (OIC), which oversees the insurance industry to ensure compliance with state insurance laws and regulations. The duty to defend and the duty to indemnify are fundamental obligations of insurers under liability insurance policies. The duty to defend requires the insurer to provide legal defense for the insured against claims or lawsuits that fall within the scope of the insurance policy. The duty to indemnify means the insurer must pay for the insured's covered losses, up to the policy limits. Insurance policies in Washington can cover various risks, including health insurance for medical expenses and commercial general liability (CGL) insurance for business-related claims and losses. Policyholders are entitled to the protections outlined in their policies, and disputes over coverage can be litigated in state courts or resolved through the OIC's consumer protection services.