A duty to defend is an obligation to provide or pay for a legal defense when a covered claim triggers that duty.
Definition
A duty to defend may come from contract language, an insurance policy, or law. Its trigger, timing, scope, and procedures depend on the particular wording and circumstances. A project agreement might require one party to provide or fund a defense for specified claims, while an insurance policy sets its own rules for defense of covered claims. These obligations can differ, even when they relate to the same event. A duty to defend is not necessarily the same as a duty to reimburse losses after fault or responsibility is determined. It also does not guarantee that all legal costs or claims will be covered. Engineering firm owners review defense language alongside indemnity, liability limits, notice requirements, and professional liability coverage. The ACEC provides resources for engineering firms, but the meaning and effect of a particular defense provision depend on the contract, policy, and applicable law.
How owners use it
- Owners identify who must arrange or pay for a defense, which claims trigger the obligation, and what notice is required.
- A firm compares a contract’s defense clause with its insurance policy’s defense terms before accepting the project agreement.
- Contract review records whether defense costs count toward a liability cap or are handled separately under the wording.
- When a claim arrives, the firm checks applicable notice and reporting procedures in the contract and policy.
