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 Virginia, insurance is regulated by state statutes and overseen by the Virginia Bureau of Insurance, which is part of the State Corporation Commission. The duty to defend and the duty to indemnify are fundamental tenets of liability insurance policies in Virginia. The duty to defend obligates the insurer to provide a defense for the insured against claims that are covered by the policy, even if some of the allegations in the claim may not be covered. The duty to indemnify means the insurer must pay for any losses or damages that are covered under the policy terms, up to the policy limits. Insurance policies in Virginia can cover various risks, including health, auto, homeowners, and commercial general liability (CGL), each with its specific regulations and requirements. Policyholders are encouraged to thoroughly understand their policy terms and consult with an attorney if they have questions about their coverage or if a dispute with their insurer arises.