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AccuFleet, Inc. v. Hartford Fire Insurance Co.

The duty to defend is distinct from, and broader than, the duty to indemnify. An insurer must defend its insured if a plaintiff's factual allegations potentially support a covered claim, while the facts actually established in the underlying suit determine whether the insurer must indemnify its insured. Thus, an insurer may have a duty to defend but, eventually, no obligation to indemnify. Houston Court of Appeals, No. 01-08-00684-CV, 09-17-2009

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OPINION

In this insurance coverage dispute, AccuFleet, Inc. (“AccuFleet”) appeals from the trial court’s granting summary judgment in favor of Hartford Fire Insurance Company (“Hartford”), and denying AccuFleet’s cross-motion for summary judgment. In two issues, AccuFleet argues that Hartford breached the insurance policy by failing to (1) defend AccuFleet and Continental Airlines, Inc. (“Continental”), an additional insured under the policy, and (2) indemnify Continental. We affirm the judgment of the trial court regarding Hartford’s duty to defend and indemnify Continental. We reverse the judgment of the trial court regarding Hartford’s duty to defend AccuFleet.

Factual and Procedural Background

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