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 Wyoming, as in other states, insurance is regulated by state law. The Wyoming Insurance Department oversees the insurance industry, ensuring compliance with state statutes and regulations. Insurance policies in Wyoming are contracts between the insurer and the insured, where the insurer has two primary legal obligations: the duty to defend and the duty to indemnify. 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 policy coverage. The duty to indemnify means the insurer must pay for the losses or damages covered by the policy, up to the policy limits. Insurance coverage can vary widely, including policies for health, life, property, and liability, such as Commercial General Liability (CGL) insurance for businesses. These policies are subject to the terms and conditions outlined in the insurance contract, and policyholders are required to pay premiums to maintain their coverage. State statutes and regulations govern policy standards, consumer protections, and the conduct of insurers operating within the state.