When policyholders get sued, insurance companies are supposed to step in to help and defend. An insurance company’s duty to help and defend its policyholder is “exceedingly broad.” That has been the law in New York and in most, if not every, jurisdiction in the United States for decades. But what does “exceedingly broad” mean in 2022? Two recent cases provide a helpful barometer for policyholders.

In a nutshell, the “exceedingly broad” duty to defend requires an insurance company to resolve all doubts in favor of defending, including:

1. Whether the lawsuit alleges covered loss or damage

2. Whether an exclusion applies

3. Whether a condition for coverage has been satisfied

4. Whether the defendant is an insured under the policy; and,

5. All of the above—so if there are doubts in multiple respects, an insurance company must separately resolve each doubt in favor of defending.