Wordings Library
Liability
Clause explained
Cross Liability
Treats insured parties as if each had a separate liability policy, subject to the shared limit.
Meaning
Treats insured parties as if each had a separate liability policy, subject to the shared limit.
Why insurers use it
To clarify how one insured's liability to another is handled without multiplying the policy limit.
Effect on coverage
May support claims between insured parties, but employee, property-in-care, contract, or other exclusions can still apply.
Illustrative example
A subcontractor injures an employee of the principal and both are insured under one policy.
Claim consequence
Without suitable wording, the insurer may dispute whether an insured-versus-insured claim is covered.
What the insured should negotiate or check
Check separation-of-insureds wording, shared aggregate, exclusions, deductibles, and contractual-indemnity interaction.