Delaware
How Boling v. Progressive Casualty applies in Delaware: state-specific rules, key cases, and bar exam notes for Other.
Delaware law mirrors the principles established in Boling v. Progressive Casualty regarding insurance coverage disputes, particularly in the evaluation of the insurer's duty to defend. The courts emphasize a broad interpretation of the duty to defend, favoring the insured.
In Delaware, an insurer's duty to defend is triggered by any potential for coverage in the allegations stated in the complaint, following the principle of 'the duty to defend is broader than the duty to indemnify.'
The court reinforced the principle that insurers must provide a defense unless the allegations fall solely outside the scope of the policy.
Here, the Delaware Supreme Court acknowledged that any ambiguity in a policy should be construed in favor of coverage for the insured.
The court established that insurers cannot deny a defense based on speculative future exposures or liabilities that may arise.
Delaware's approach closely aligns with the federal standard under the duty to defend, emphasizing a liberal interpretation that favors the insured. However, Delaware courts have a more rigid requirement for substantiating the policy's language and its relation to the alleged claims than some federal jurisdictions.
Knowledge of Delaware's expansive interpretation of the duty to defend is relevant for the Delaware bar exam, particularly in insurance law questions.