What does Other Insurance Clause mean? Read on to discover the definition & meaning of the term Other Insurance Clause - to help you better understand the language used in insurance policies.
Other Insurance Clause
A provision found in both property and liability insurance policies establishing how loss is to be apportioned among insurers when more than one policy covers the same loss. These provisions vary: some policies provide no coverage when other insurance is in place, some pay a pro rata share, and others apply in excess. They are included to comply with the principle of indemnity, which states that an insured should not profit from an insured loss.
We hope the you have a better understanding of the meaning of Other Insurance Clause.