When does the insurer's duty to "defend in court" become effective?

The insurer's duty to "defend in court" becomes effective once a lawsuit is filed in court. This is rooted in the principle that the defense obligation arises under the terms of the insurance policy once formal legal action is initiated against the insured. At this point, the insurer is required to provide legal representation and defend against the allegations made in the lawsuit, as outlined in the terms of the policy.

This obligation reflects the understanding that litigation is a serious matter and that the insured merits protection when facing claims that have escalated beyond merely a notification or informal claim. The insurer’s responsibility is typically explicitly stated in the policy language, ensuring coverage for legal defenses against a lawsuit as part of the protection it provides to policyholders.

In contrast, a claim being filed, prior to a lawsuit, or merely receiving a notice of claim may trigger an obligation for the insurer to investigate or respond, but does not, in itself, initiate the duty to defend in court. The defense obligation is specifically tied to litigation proceedings, ensuring that the insured has the necessary support to counter any claims made against them in a formal setting.