You may see this in an insurance policy, a denial letter, or a call where the adjuster says the company will "provide a defense under a reservation of rights." That language points to an insurer's obligation to hire and pay for a lawyer to defend a covered person or business when a lawsuit claims damages that might fall under the policy.

This matters because the duty to defend is usually broader than the duty to indemnify, which is the duty to actually pay a settlement or judgment. If the allegations in the lawsuit even potentially fit the policy, the insurer may have to step in and defend. That can mean paying attorney fees, court costs, and other defense expenses while the case is being fought. A company may still argue later that it does not owe payment for the final outcome, but it cannot always refuse to defend at the start.

For injury claims, this can become a pressure point fast. If an insurer wrongly refuses a defense, the policyholder may be left exposed and pushed toward a bad settlement. In Ohio, that refusal can feed a bad faith claim if the insurer lacked a reasonable justification. It also affects strategy in cases involving shared blame, because Ohio's modified comparative fault rule, Ohio Revised Code 2315.33, bars recovery if a person is 51% or more at fault. When coverage is disputed, every delay can be used against you.