What Is an Insurance Cross Liability Clause?

If you purchase insurance, you may need to understand what a cross liability clause is and what it means. Here are the basics of cross liability clauses and how they work.

Cross Liability Clause

If you buy an insurance policy that covers more than one individual, there is always the chance that cross liability could occur. This means that one individual that is covered by the policy could potentially damage or hurt another individual that is also covered by the same policy. 


Every insurance company and policy handles this situation differently. Some of them are going to treat each insured individual as a separate entity and go ahead and pay for a lawsuit or claim that is filed. Other insurance companies will negate liability and say that they should not have to pay the claim. If this situation ever comes up for you, you will want to make sure you understand how your policy is worded when it comes to the cross liability clause. If you are injured by another individual that is covered under your insurance policy, you will want to make sure that you are covered by your insurance provider so that you can be compensated. 

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