In this second episode of Tales From Insurance Land, we examine the origins of the fundamental principle of liability insurance: the duty to defend is broader than the duty to indemnify. We focus in particular on a relatively obscure insurance coverage decision from the Connecticut Supreme Court, Smedley Co. v. Employers Mutual Liability Ins. Co., 143 Conn. 510, 123 A.2d 755 (1956), where, I believe, this principle was first expressed in its modern form.

Like many principles of insurance law, the holding the Smedley was the result of a claim. In this case, it was a mixup at the Smedley warehouse in the 1950s over delivery of a product called Frodex to Mohegan Dairies. What was Frodex? It was basically a corn syrup used to sweeten ice cream. 🍦 But according to its manufacturer's advertisements, Frodex was so much more than corn syrup.

So what did Smedley ship instead of the delicious Frodex? And what happened to Mohegan Dairies' ice cream as a result?

Find out the answers to these questions (and learn a little about the duty to defend vs. the duty to indemnify) in this latest episode of Tales From Insurance Land.

CREDITS: Joel B. read the Frodex commercial.

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The choice of a lawyer is an important decision and should not be based solely upon advertisements.