When there is no coverage, what is the insurance company's obligation regarding the duty to defend?

The correct answer highlights that when there is no coverage for a claim under an insurance policy, the insurance company does not have an obligation to provide a defense for that claim. This principle is rooted in the nature of insurance contracts, where the duty to defend is typically tied to the existence of coverage.

In cases where a policy’s terms do not cover the alleged claim or circumstances, it follows that the insurer is not required to involve itself in defense activities. This means the insurer is relieved of its responsibility regarding legal representation and costs associated with defending against claims that fall outside the parameters of the coverage provided by the policy.

This aligns with the general legal understanding that while insurers may provide a defense at times as a courtesy or for customer relations, their legal obligation to do so is fundamentally dependent on the existence of valid coverage under the policy.