Under a liability policy, when will the insurance company pay damages on behalf of an insured?

The insurance company will pay damages on behalf of an insured when it is established that the insured is legally liable. This principle is foundational to liability insurance. The coverage is designed to protect the insured financially when they are found legally responsible for causing injury or damage to another party. Therefore, the determination of legal liability is crucial; if the insured is not liable, there is no obligation for the insurance company to provide coverage or indemnify the insured for any claims.

In terms of the other options, while a claimant's filing of a complaint is a necessary step in the claims process, it does not, by itself, trigger payment from the insurer. Similarly, minimizing damages is a best practice, but it does not determine the insurer's obligation to pay; that obligation hinges on the legal liability being established. Reporting the incident is important for notification and processing the claim but does not automatically lead to payment unless liability is affirmed.