Tender of Defense
What is the Tender of Defense?
Tender of defense is a term used in the insurance industry to refer to the process by which an insured party requests that their insurer assume responsibility for defending against a legal claim or lawsuit. The term "tender of defense" may refer to requesting coverage and the insurer's acceptance or rejection of that request.
Tender of Defense in More Detail
In insurance, the obligation to defend is often included in liability policies. It requires the insurer to defend the insured against covered claims, even if they are groundless or fraudulent. When a claim is made against an insured, the insured must promptly tender the defense to the insurer, providing all relevant information and cooperating with the insurer’s investigation.
Understanding the tender of defense process is essential for insurers and policyholders, as it helps ensure that legal claims are correctly handled, and coverage obligations are met.
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