The determination of whether an insurer has a duty to defend isthe most important of all coverage issues, which shouldn't besurprising.

The question arises in just about every liability claim — regardless of policy type. Noother issue can make that claim. And the consequences for aninsurer that breaches its defense obligation are, at best,significant and, at worst, monumental.

The underlying plaintiff also has a lot riding on it. If adefense is owed, an insurer, now incurring costs, may be inclinedto settle at some point — even if the case is defensible.

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