crossliability

Crossliability, also known as cross-liability, is a provision found in many liability insurance policies and related contracts that addresses coverage when multiple insureds are involved under a single policy. The core purpose is to treat each named insured as if their coverage were separate for the purposes of claims among insureds, so that the policy will respond to losses that arise between insured parties.

In practice, a cross-liability clause states that the insurance applies separately to each insured against whom a claim is made and that coverage for one insured is not reduced by claims asserted by another insured under the same policy. This helps prevent inter-insured disputes from eroding available limits and ensures that a claim by one insured against another can be defended and compensated as if there were distinct policies for each party, subject to the policy’s terms, conditions, and aggregate or per-occurrence limits.

Scope and examples: Cross-liability is commonly found in commercial general liability policies and is often described as severability of interests or a cross-liability endorsement. For example, if two businesses named as insureds under the same policy face a dispute arising from a shared incident, the clause allows coverage for claims between them to be treated as arising from separate insureds. It does not create new coverage beyond the policy’s stated limits and exclusions, and some policies or jurisdictions may omit it or replace it with alternative language.

Limitations: Cross-liability does not override explicit exclusions, such as damages excluded for professional services or contract-based waivers, and its availability varies by policy form and jurisdiction.