Also known as: groundless false or fraudulent · baseless · frivolous
Written by attorneys · grounded in primary & secondary sources — see below
A standard clause in liability insurance policies requiring the insurer to defend the insured against third-party suits alleging covered harms even when those claims lack factual support, rest on falsehoods, or involve deceit by the claimant.
Georgia Gibbs retained counsel to sue Golden Gate Logistics after a minor delivery delay. The lawyer filed the complaint without reviewing any shipping records or contracts and alleged intentional fraud solely to pressure a settlement. The court later dismissed the action after finding no evidence supported the allegations.
Gordon Gray sued Glacier Energy for breach after a contract dispute. At the pretrial conference the court reviewed the pleadings and eliminated several counts that rested only on speculation with no supporting documents or witness statements.
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Grace Gupta served broad discovery requests on Gulfstream Aviation seeking every internal email from the past decade even though the lawsuit concerned a single invoice. Opposing counsel moved for a protective order after showing the requests had no connection to the pleaded issues.
Yes. Standard liability policies expressly require the insurer to defend suits alleging covered harms even if the allegations are groundless, false, or fraudulent. The duty turns on the potential for coverage based on the complaint's allegations rather than the ultimate truth of those allegations.
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The clause prevents apportionment between covered and uncovered claims in many jurisdictions. Because the insurer must defend the entire action whenever any allegation potentially triggers coverage, courts often refuse to divide defense costs even when some counts are groundless.
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The insurer still fulfills its defense obligation. The clause ensures the insured receives a defense regardless of whether the suit ultimately succeeds or is shown to rest on falsehoods, protecting the insured from the expense of litigating meritless claims.
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