It is truly an axiom that the duty to defend is broader than the duty to indemnify. Simply, if there is a reasonable potential for coverage under the policy (with the benefit of the doubt accruing to the insured) there is a duty to defend a suit.  The duty to indemnify, on the other hand, depends on the insured demonstrating that a loss is actually covered. In many instances, particularly construction defects and other types of long-term exposure or continuous damage claims, the duty to defend, typically unlimited, is more valuable than the duty to indemnify which is ordinarily subject to limits. By the end of this session, participants should be able to...

• Define legal obligation.
• Differentiate between potential coverage and actual coverage.
• Contrast between the four corners test and the extrinsic information test.