The carrier's duty to defend arises whenever the allegations in the complaint state a cause of action that gives rise to the reasonable possibility of recovery under the policy. If any of the claims against an insured arguably arise from a covered event, the insurer is required to defend the entire action. There is a duty defend if the allegations of the complaint are even potentially within the language of the insurance policy.
1416 Coney Is. Realty, LLC v. Wesco Ins. Co., NY Slip Op 03320 (2d Dep't June 21, 2023)
