Getting sued by tenant for fall on my commercial property

[James W.]

I own a commercial property in a LLC and back in 2014, I did some renovations on the building. During the renovation, one of my tenants claims she tripped and broke her hip on some loose gravel that was displaced by the contractor's scaffolding and was on the walkway. I think her whole story is bogus but I have no way to prove it. She wanted damages for pain and suffering and medical bills equal to about $50k.

Long story short my property insurance company initially settled for $25k but at the last minute they said they are no longer paying the claim because in my contract with the contractor, I placed a line in that states," The Contractor agrees to indemnify and hold the Owner harmless from any claims or liability arising from the Contractor's work under this agreement".   My insurance company told the tenant's attorney to contact the contractors insurance for the claim.

Yesterday I received a notice from my insurance company that I will be getting served pretty soon and to forward to lawsuit notice to them.  I did not sleep at all this weekend and my insurance company is closed today for presidents day.  Do I need to find a lawyer once I get served or will the insurance company have one for me? Is my insurance company trying to get out of payment by shifting the liability to the contractor?  What am I going to do if both my insurance company and the contractors insurance both refuse to pay?  

Does anyone have any experience with this?