Cross-Liability Coverage Clause Samples

The Cross-Liability Coverage clause ensures that when an insurance policy covers multiple parties, each insured party is treated as if they have separate insurance with respect to claims made by one insured against another. In practice, this means that if one insured party under the policy sues another insured party for damages, the policy will respond to the claim as if each party had their own individual coverage, rather than excluding such claims as internal disputes. This clause is essential for preventing gaps in coverage and ensuring that all parties receive the intended protection, even in cases of inter-insured claims.