Dewitt v. Monterey Insurance

*236Opinion

AARON, J.—

I

INTRODUCTION

A liability insurer’s duty to defend its insured against third party claims applies to claims that are potentially within the scope of the insured’s policy. The insurer’s duty to indemnify applies only to claims that are covered by the policy. (Risely v. Interinsurance Exchange of the Automobile Club (2010) 183 Cal.App.4th 196, 207-208 [107 Cal.Rptr.3d 343].) “From the covenant of good faith and fair dealing implied by law in all contracts, and from [a] liability insurer’s duty to defend and indemnify covered claims, California courts have derived an implied duty…