The “tripartite”; relationship refers to the relationship among the three parties when a lawyer is hired by an insurer to defend a suit against its policyholder. That multifaceted relationship can present actual or potential conflicts between the interests of the insurer and insured. This article reviews the sources of law governing whether a conflict exists and a series of scenarios that may pose actual or potential conflicts between the interests of the insurer and its policyholder. We also discuss how these issues may arise in the particular context of environmentally related liability and coverage cases.