What does Apportionment mean? Read on to discover the definition & meaning of the term Apportionment - to help you better understand the language used in insurance policies.
Involves the question of "how much" each of two or more policies covering a risk, which sustained a loss, will contribute to that loss. In workers compensation insurance, it is the division of liability for an occupational illness among various entities. Usually this means dividing it among a group of employers in whose employment the employee was exposed to the conditions that contributed to the illness. It can also mean division of liability between an employer and a fund, such as a second injury fund, that pays for the portion of a claim attributable to preexisting conditions.
We hope the you have a better understanding of the meaning of Apportionment.