What does Double Insurance mean? Read on to discover the definition & meaning of the term Double Insurance - to help you better understand the language used in insurance policies.
Situation in which the same risk is insured by two overlapping but independent insurance policies. It is lawful to obtain double insurance, and the insured can make claim to both insurers in the event of a loss because both are liable under their respective polices. The insured, however, cannot profit (recover more than the loss suffered) from this arrangement because the insurers are law bound only to share the actual loss in the same proportion they share the total premium. Also called dual insurance.
We hope the you have a better understanding of the meaning of Double Insurance.