Court of Appeals for the Seventh Circuit July 15, 2002, 01-3484 (Scottsdale Insurance Co. v. Subscription Plus, Inc. And Karleen Hillery)

POSNER, Circuit Judge.

This appeal requires us to consider the duty of a liability insurance company (Scottsdale) to defend its insureds (Subscription Plus and Karleen Hillery) — especially against bad claims. Subscription Plus, owned and operated by Hillery, is in the business of processing magazine subscriptions. It made a contract with Y.E.S.!, a sales agency, whereby Y.E.S.!