Construction Defects and Insurance Coverage: When Is the Duty to Defend Triggered?

In Florida, an insurance company may have a duty to defend and/or indemnify its insured. The insurance company’s duty to defend its insured (as in defending the insured in a lawsuit) is broader than its duty to indemnify (as in paying for damages caused by the insured). The duty to defend is separate and apart from the duty to indemnify.  An insurance company’s duty to defend is triggered solely by the allegations in the complaint, even if those allegations are incorrect or meritless. Jones v. Fla. Ins. Guar. Ass’n, Inc., 908 So. 2d 435, 443 (Fla. 2005). This body of law holds true even where a complaint alleges facts which fall partially within and partially outside coverage of the applicable insurance policy. Trizec Props., Inc. v. Biltmore Const. Co., 767 F.2d 810, 811-12 (11th Cir. 1985). In that scenario, the insurance company is obligated to defend its insured for the entire case. Any doubts as to whether the allegations in the complaint trigger a duty to defend must be resolved in favor of the insured and against the insurance company. Lawyers Title Ins. Corp. v. JDC (America) Corp., 52 F.3d 1575, 1580-81 (11th Cir. 1995).     Read the article…………….


Related Articles

Lawmakers (IL) pass bill to limit exposure of foreclosed condo buyers

If signed into law, a buyer of a condo unit at a foreclosure sale would have to pay any unpaid

Homeowners Association/Arbitration: Duo Unpublished Decisions Out Of 2/6 DCA Are Interesting

This one involved a 15-year feud about a hot water heater. (We are not kidding.) In essence, there were some

Strata owners looking to set language precedent at B.C. Human Rights Tribunal

A group of condo owners in Richmond has won the right to take their case to the Human Rights Tribunal