What Does Pro Rata Liability Clause Mean?

Free Business Insurance Quote Click Here
What does Pro Rata Liability Clause mean? Read on to discover the definition & meaning of the term Pro Rata Liability Clause - to help you better understand the language used in insurance policies.

Pro Rata Liability Clause

Pro Rata Liability Clause

A pro rata liability clause is a stipulation in an insurance policy that obliges the insurance company to cover only a percentage of a loss if the insured has other policies from other companies covering the same risk. After the insurer covers that percentage, the other companies pay for the rest.

We hope the you have a better understanding of the meaning of Pro Rata Liability Clause.

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z


Free Business Insurance Quote Click Here