How A $1 Million CGL Insurance Policy Unleashed A $91.5 Million Win

Corporate executives wondering just how valuable a duty to defend is under a standard commercial general liability (CGL) insurance policy should pay attention to an eye-opening case — involving $91.5 million in defense costs.

Picture this scenario: companies of all sizes invest in CGL insurance to shield themselves from claims for bodily injury, property damage, and personal and advertising injury. These policies typically include a duty to defend the policyholder from claims and lawsuits, along with a duty to indemnify the policyholder for settlements and judgments.

Here's where it gets interesting: the duty to defend is even broader than the duty to indemnify. Courts often use a rule called the "eight corners rule" to determine whether the duty to defend is owed. This means they compare the language in the policy to the language in the complaint seeking coverage. If the allegations of the complaint fall within, or have the potential to fall within, the policy