A liability insurer has two duties: a duty to defend and a duty to indemnify. A recent insurance coverage dispute summarizes these two duties, which are critical for parties to understand and appreciate in the context of insurance coverage claims:
An insurance company’s duty to defend is distinct from and broader than its duty to indemnify. “The allegations of the complaint govern the duty of the insurer to defend.” “The question of duty to defend is answered based upon a review of the underlying pleadings filed against the insured as well as the insurance policy itself.” If the allegations fairly bring the case within the terms of the policy, the duty to defend the underlying lawsuit arises. However, if the allegations do not fall within the insuring agreement or fall within an exclusion, the duty to defend never arises.
The duty to indemnify is determined by looking beyond the underlying complaint. It is governed by the facts of the case. Courts analyze the terms of the policy in light of those facts.
If the duty to defend does not exist, then the duty to indemnify likewise does not exist.
Catalina West Homeowners Association, Inc. v. First Community Ins. Co., 50 Fla.L.Weekly D1318a (Fla. 3d DCA 2025) (internal citations omitted).
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