Part One includes a defense obligation by the insurer. Which statement best describes this defense?

• A. The insurer will defend only if benefits are contested
• B. The insurer will defend any claim, proceeding, or suit for benefits payable by the policy
• C. The insurer does not defend; the employer must defend themselves
• D. The insurer defends only third-party suits

Answer: (B)

The key point is the insurer’s duty to defend claims for benefits under the policy. In Part One of a workers compensation policy, the insurer agrees to defend any claim, proceeding, or lawsuit that seeks benefits payable by the policy—such as medical expenses or wage replacement—and to cover the defense costs. This obligation is broad: it applies to administrative claims and civil actions alike, as long as the claim seeks benefits that the policy covers. It isn’t limited to cases where benefits are contested, nor is it restricted only to third-party suits; the insurer handles defenses for all covered benefits. That’s why the statement describing defense of any claim, proceeding, or suit for benefits payable by the policy best captures the insurer’s defense obligation.