Wednesday, 15 July 2015

workers compensation and employers liability policy

An insurance policy that provides coverage for an employer's two key exposures arising out of injuries sustained by employees.

Part One of the policy covers the employer's statutory liabilities under workers compensation laws, and

Part Two of the policy covers liability arising out of employees' work-related injuries that do not fall under the workers compensation statute.


severability of interests clause in an insurance cover

A policy provision clarifying that, except with respect to the coverage limits, insurance applies to each insured as though a separate policy were issued to each. Thus, a policy containing such a clause will cover a claim made by one insured against another insured."

Purpose of this clause and the purpose of "cross liability clause" is identical.

Cross Liability Coverage in an Insurance cover

Cross liability refers to the ability of one insured party to sue another insured party if both parties are under the same contract. Cross liability coverage is most frequently found in commercial insurance contracts.

 It allows the different parties on the contract to be treated separately in certain situations, while in other situations treated the same. In the case that the parties are treated separately during a claims suit, they are not all given a separate coverage limit. This means that an aggregate limit still applies to the total coverage provided by the policy.

 For example, an automobile company shares a liability policy with its subsidiaries. The parent company is responsible for assembling the vehicle, while the subsidiaries make the parts and components. Because of a faulty part, a number of road accidents occur, resulting in a number of claims made against the automobile manufacturer. Using the separation of insureds feature of the cross liability coverage policy, the parent company sues one of its subsidiaries."
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