The Dual-Promise Policies
Modern liability policies make two promises:
- to defend the insured; and
- to indemnify the insured if the insured is found liable for damages.
Because the cost of defense often exceeds the amount of indemnity owed to the third party. Cost makes the duty to defend one of the most important aspects of any liability policy. People buy liability insurance to get protection from the expense of unwarranted litigation.
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