Liability · Insurance Term
Duty to Defend
Definition
The duty to defend is a liability insurer's obligation to provide and pay for your legal defense. It applies when a lawsuit alleges facts that could be covered by the policy, even if the claims are groundless. It is generally broader than the insurer's duty to pay a judgment or settlement.
In Plain English
Most general liability policies give the insurer the right and duty to defend suits seeking covered damages. If any part of a lawsuit could fall within coverage, the insurer typically must defend the whole suit, even when some claims are excluded. The duty generally ends once the limit is used up paying judgments or settlements.
Insurers sometimes defend under a reservation of rights, agreeing to defend while keeping the option to deny payment later. If you are an additional insured on someone else's policy, you can ask their insurer to defend you through a tender of defense.
Some policies, often professional liability, D&O or certain surplus lines forms, have no duty to defend. Instead, they reimburse defense costs, and you choose and manage the lawyers.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical and simplified: A visitor sues a shopping center owner, claiming a slip on a wet floor and also claiming the owner intentionally destroyed video footage. The intentional claim may not be covered, but because the slip claim could be, the general liability insurer typically must defend the entire lawsuit.
Why It Matters for Texas Property Owners
Texas courts generally decide whether an insurer must defend by comparing the lawsuit's factual allegations with the policy. This is often called the "eight-corners rule." The Texas Supreme Court allows outside evidence only in narrow situations. For questions about a specific lawsuit, consult a Texas attorney.
What to Watch For
- Send lawsuit papers to your insurer immediately.
- Read any reservation of rights letter closely and ask what it means for you.
- Check whether each liability policy has a duty to defend or only reimburses costs.
- Tender claims to other parties' insurers when your contracts make you an additional insured.
Sources
Last updated October 14, 2026 · Primesure editorial team · How We Write