ANNOUNCER: I’m with Lucy Lee from Cohen Highley Lawyers. What obligations do insurance companies owe their insureds?
LUCY: There are two important ones, the duty to defend and duty to indemnify.
ANNOUNCER: Explain Duty to defend.
LUCY: The insurance company may be obliged to provide the insured a legal defense against claims or lawsuits as dictated by the terms of the policy. This duty involves hiring a lawyer, court fees, investigation expenses, cost of surveillance, and so on.
ANNOUNCER: And duty to indemnify?
LUCY: The insurance company is obliged to compensate the insured party for proven claims, losses or damages on behalf of their insured.
ANNOUNCER: And the insured’s responsibilities?
LUCY: There are three main ones: notify the insurance company if events have occurred that may lead to a claim or you receive a notice of a claim. Second, if you receive a statement of claim or a notice of action, provide a copy to your insurance company. Third, cooperate with the insurance company. Never ignore letters, calls, emails asking for answers.
