If someone sues you, the last thing you want is confusion about who’s paying for what. Many people think their insurance will “take care of it,” but that’s not always true. In Florida, insurance policies often include two separate duties: one to defend you and one to pay damages. These aren’t the same, and getting them confused can lead to trouble.
“Duty to Defend” means your insurance company hires a lawyer to represent you in court. It doesn’t matter if you actually did anything wrong. If the claim could possibly be covered under your policy, they usually have to step in and defend you.
“Duty to Indemnify” is about paying for damages if you lose the case or settle. It’s the insurance company’s job to pay the judgment or approved settlement if the claim is covered by the policy. This only kicks in after the case is over or settled.
They Don’t Always Go Together
An insurer might defend you in court but still say they won’t pay any damages. That’s legal in some cases. Florida law sees defense and indemnity as separate duties. Just because they’re defending you doesn’t mean they’ll pay a dime in the end.
In most cases, the duty to defend comes up faster. If there’s any chance the claim falls under your policy, they usually must provide a defense. It’s broader than the duty to indemnify. Even if it turns out the claim isn’t covered, they may still have had to defend you.
The duty to indemnify only becomes clear later. Once a case is decided or settled, the insurance company checks if the damages are covered. If not, you may have to pay out of pocket. That’s why this duty is more limited.
Why This Matters in Construction and Commercial Work
Contractors and business owners often rely on insurance to protect them when projects go wrong. But not knowing the difference between defense and indemnity can leave you exposed. You may think you’re fully covered when you’re not. And once the bills come in, it’s too late to fix it.
Not all insurance policies are written the same way. Some have carve-outs or exclusions. Some policies shift the cost to a subcontractor or third party. Read your policy (or have someone who understands these terms review it) before you sign contracts or respond to lawsuits.
Insurers may defend you but still deny coverage later. Or they may refuse to defend you at all. If that happens, you may need to challenge them or bring your own lawyer to protect your interests. Waiting too long can cost you your defense and your right to recover.
Get Clear Answers Before You Sign Anything
Whether you’re being sued or bringing the lawsuit, it’s important to know what each party’s insurance covers. Don’t rely on guesses and don’t assume your policy does more than it really does.
Our team works directly with contractors, business owners, and property owners across South Florida. If you’ve been sued or are facing claims under a policy, we’ll break it down clearly, step by step. You’ll know exactly what your insurance covers and what it doesn’t. Call us today.
Garcia & Garcia Attorneys at Law
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