When insurance provides coverage against third party claims, an in?surer has a duty to defend any suit based on such a claim against the insured.

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When an insurance policy provides coverage against third party claims, the insurer has a duty to defend the insured against any lawsuits stemming from such claims. This means that even if the claim is groundless, false or fraudulent, the insurer has a responsibility to provide legal defense against the lawsuit brought by the third party. This is because the insurer owes a duty of good faith and fair dealing to the insured, and has a vested interest in defending against potential liability.

When Insurance Provides Coverage Against Third Party Claims, an In?surer