CMFAS CGI Engineering & Construction Insurance question: joint-names CAR/EAR policy

CMFAS CGIEngineering & Construction Insurance

On a joint-names CAR/EAR policy, what does a cross-liability clause achieve?

A It cancels the liability section for sub-contractors once their part of the work is finished
B It merges the Material Damage and liability sections under one shared limit of indemnity
C It treats each insured as if separately insured, so claims between co-insureds can be met
D It removes the limit of indemnity for claims brought by the principal against the contractor

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Answer: C. It treats each insured as if separately insured, so claims between co-insureds can be met

A cross-liability clause treats each insured as separately insured, so one insured (e.g. a sub-contractor) can claim against the liability section for injury or damage caused to another insured, subject to the policy limits.

Common mistake

Thinking a joint-names policy automatically bars claims between the co-insured parties.

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Answer: C. It treats each insured as if separately insured, so claims between co-insureds can be met

Common mistake

Thinking a joint-names policy automatically bars claims between the co-insured parties.

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CMFAS CGI Engineering & Construction Insurance question: joint-names CAR/EAR policy

Answer: C. It treats each insured as if separately insured, so claims between co-insureds can be met

Common mistake

Related CMFAS CGI questions

CMFAS CGI Engineering & Construction Insurance question: joint-names CAR/EAR policy

Answer: C. It treats each insured as if separately insured, so claims between co-insureds can be met

Common mistake

Related CMFAS CGI questions