Insurance generally refers to a legally enforceable contract—known as an insurance policy—in which an insurance company (the insurer) agrees to (1) defend the person or entity who purchased the policy (the insured) against future claims or lawsuits; and (2) pay for losses (usually financial) that are covered under the written terms of the insurance policy.

These two primary legal obligations of an insurer under a liability insurance policy are known as the duty to defend and the duty to indemnify.

Insurance may be purchased to cover a wide range of future claims or losses—ranging from health insurance to pay future medical expenses, to commercial general liability (CGL) to cover future claims and losses incurred by a business.

In Florida, insurance is regulated by both state statutes and federal law. The Florida Department of Financial Services oversees the insurance industry, ensuring compliance with state insurance laws and regulations. Insurance policies in Florida are contracts between the insurer and the insured, where the insurer has two primary legal obligations: the duty to defend and the duty to indemnify. The duty to defend obligates the insurer to provide legal defense to the insured against claims or lawsuits covered by the policy. The duty to indemnify means the insurer must pay for the losses or damages specified in the insurance policy. Florida offers various types of insurance, including health insurance for medical expenses and commercial general liability (CGL) insurance for business-related claims and losses. The specific terms and coverage of an insurance policy are detailed in the written contract, and policyholders are encouraged to understand their policies and consult with an attorney for any legal advice or clarification regarding their insurance coverage.