Duty to Defend

What You Need to Know

Duty to defend vs. duty to indemnify: duty to defend (broader) means your insurer must provide legal representation for any claim that potentially falls within coverage, regardless of merit. Duty to indemnify (narrower) means your insurer must pay settlements or judgments only if you're actually found liable for a covered claim.

The duty to defend begins immediately when a claim is filed that could possibly fall within coverage, and continues until the case is resolved, it's definitively determined no coverage applies, or policy limits are exhausted.

What your insurer provides once triggered: assigned defense attorneys, management of the entire legal process, all court filings and proceedings, investigation and discovery, and payment of all defense costs including attorney fees and expert witnesses.

Why It Matters for Restaurant Owners

When you're sued, your insurer doesn't just write a check and leave you to hire your own attorney — they assign experienced defense attorneys and pay all associated costs, which can save you hundreds of thousands of dollars even if the lawsuit is ultimately dismissed.

Immediate steps to activate your duty to defend when served:

• Do not ignore or throw away any legal documents you receive
• Contact your insurance agent or broker immediately — call, don't email
• File a formal claim and send copies of all legal documents to your insurer
• Wait for your insurer to assign a defense attorney — don't hire your own yet

Understanding the limits matters too: if you're sued for something clearly excluded, like intentional harm, your insurer may issue a reservation of rights or seek a declaratory judgment that they have no duty to defend, leaving your own legal defense in your hands.