Opinion ID: 2822801
Heading Depth: 2
Heading Rank: 1

Heading: Duties to Defend and Indemnify

Text: A liability insurer's duties to defend and indemnify are distinct. Allen v. Continental W. Ins. Co., 436 S.W.3d 548, 552 (Mo. banc 2014). The duty to indemnify is simply the insurer's obligation to pay for the insured's actual liability if it is covered by the policy. See 3 New Appleman on Insurance Law Library Edition, § 16.06[1], [3][a] (2014); 14 Couch on Insurance, § 200:3 (3d ed. 2014). If there is coverage, § 379.200 allows a judgment creditor to proceed in equity against the defendant and the insurance company to recover insurance proceeds. The duty to defend is broader than the duty to indemnify. Allen, 436 S.W.3d at 552. However, it arises only when there is a possibility or potential for coverage at the outset of the case. Id. It hinges on facts: (1) alleged in the petition; (2) the insurer knows at the outset of the case; or (3) that are reasonably apparent to the insurer at the outset of the case. Id. at 553. Unless these facts support some reasonably apparent theory of recovery against the insured that would give rise to coverage, the insurer has no duty to defend. See id. at 553 n.4. The Court assumes Flowers could assign his claim of breach of contract for failure to defend to the plaintiffs because the issue is not in dispute.