California Courts of Appeal,
Insurance
Jul. 14, 2017
Misconceptions about an insurer’s duty to defend
In spite of the Supreme Court’s continuing reaffirmation of the broad “potential for coverage” standard, policyholders continue to hold many misconceptions about when a duty to defend is owed.
INSURANCE INSIGHTS
Over the past half-decade, the California Supreme Court has repeatedly affirmed the "potential for coverage" standard, making clear that a liability insurer will only be relieved of a duty to defend if the third-party complaint filed against its insured can "by no conceivable theory" raise a "single issue" which would bring it within the policy coverage. Montrose Chem. Corp. v. Superior Court, 6 C...
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