Section 5.11 We will defend any suit seeking damages which are payable under the terms of this policy, even if any of the claims in the suit are groundless, false or fraudulent.

• Library: Insurance Practice 2015

The liability coverage insuring agreement customarily contains language stating the insurer’s obligation to defend bodily injury or property damage claims. This is a benefit to both parties to the insurance contract because it relieves the insured of the cost associated with a lawsuit and it relieves the insurer of the potential for having to pay a judgment resulting from a poorly defended lawsuit. The company obligates itself to provide a defense and, in the additional coverages section, to pay the costs and fees associated with that defense. The insured agrees that the company may assume control of any suit brought against the insured that alleges bodily injury or property damage within the insurance afforded by the policy.

If the suit alleges conditions under which the policy provides no insurance (e.g., the injured plaintiff is an employee of the insured defendant), the company is under no obligation to defend...