Each liability insurance provider has a duty to defend the insured when a third party files a legal claim against the insured that falls within the coverage terms of the policy.

Question

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This is known as the duty to defend provision, which is found in most liability insurance policies. The insurer is obligated to provide legal defense for the insured, even if the claim is groundless or fraudulent, as long as it falls within the policy's coverage terms.

Each Liability Insurance Provider Has a Duty to Defend the Insured