What does Joint and Several Liability Clause mean? Read on to discover the definition & meaning of the term Joint and Several Liability Clause - to help you better understand the language used in insurance policies.
Joint and Several Liability Clause
A joint and several liability clause is a provision stating that two or more parties share liability for a particular act or obligation. In such circumstances, any or all of the parties may be sued for damages if a plaintiff has a cause of action against them, and any or all of the parties may be required to pay damages, if awarded to the plaintiff. In terms of insurance, liability insurance exists to provide financial protection against liability suits.
We hope the you have a better understanding of the meaning of Joint and Several Liability Clause.