Duty to defend refers to an insurance company’s (insurer’s) obligation to defend a claim or lawsuit when the claim(s) asserted against the insured (policyholder) may be covered by the insurance policy.

The duty to defend is one of the insurer’s primary duties under most liability insurance policies, and an insured generally only needs to show there is some possibility of coverage for the claim(s) asserted against the insured to trigger the insurer’s duty to defend.

Therefore, the duty to defend against the claim(s) may exist even when coverage for losses or damages is in doubt and a court ultimately determines there is no coverage under the policy. And an insurer may owe a duty to defend its insured against a claim for which there are ultimately no damages awarded.

The duty to defend is determined by (1) the terms of the insured's insurance policy and (2) the facts as pleaded (stated in a lawsuit) by the claimant.

Any doubt as to whether the claims made against the insured create a duty to defend is usually resolved in favor of the insured, requiring the insurer to defend against the claims. Insurance coverage and claims issues are often complex and an insured is usually well-served by promptly discussing these matters with an experienced insurance coverage lawyer.

In North Carolina, the duty to defend is a fundamental obligation of an insurance company to provide a defense for its policyholder when the claims made against them could potentially be covered by the insurance policy. This duty is activated when there is a mere possibility that the claim falls within the policy's coverage, even if there is uncertainty about whether the policy ultimately covers the damages or losses, or if no damages are awarded. The determination of the duty to defend is based on the language of the insurance policy and the facts alleged in the claim. North Carolina courts tend to interpret ambiguities in favor of the insured, which means that if there is any doubt about the duty to defend, the insurer is typically required to provide a defense. Policyholders facing such claims should consult with an attorney experienced in insurance coverage to navigate these complex issues and ensure their rights are protected.