What is the duty of an insurer to indemnify the insured for defense costs?

"Standard comprehensive or commercial general liability insurance policies, provide, in pertinent part, that the insurer has a duty to indemnify the insured for those sums that the insured becomes legally obligated to pay as damages for any covered claim." Buss v. Super. Ct., 16 Cal. 4th 35, 45 (1997). Further, these policies provide that the insurer has a duty to defend the insured in any action brought against the insured seeking damages for any covered claim. Id. "The insurer's duty to indemnify runs to claims that are actually covered, in light of the facts proved." Id. On the other hand, the insurer's duty to defend is broader than its duty to indemnify in that the former "runs to claims that are merely potentially covered, in light of facts alleged or otherwise disclosed." Id. In a mixed action, where some claims are potentially covered while others are not, the insurer has a duty to defend the entire action. Id. at 47-48. Where claims are at least potentially covered, the insurer may not seek reimbursement for defense costs. Id. at 49. Where claims are not even potentially covered, however, the insurer may seek reimbursement for defense costs. Id. at 50.

Page 8