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 West Virginia (WV), insurance is regulated by state statutes and overseen by the West Virginia Offices of the Insurance Commissioner. The duty to defend and the duty to indemnify are fundamental tenets of liability insurance policies in WV. 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. The duty to indemnify means the insurer must pay for the losses or damages covered by the policy, up to the policy limits. Insurance policies in WV can cover various risks, including health insurance for medical expenses and commercial general liability (CGL) insurance for business-related claims and losses. Policyholders are required to pay premiums, and in return, insurers provide the agreed-upon coverage. Insurance contracts must comply with state regulations, which are designed to ensure fair practices and the solvency of insurance companies.