Cross Liability

Cross Liability refers to when there is a claim for one of the people named on the policy (an insured) for which another insured covered by the same policy but living in a separate dwelling is deemed liable then it is just like there are two policies in place.

There are limitations to this coverage. This does not double or even increase the overall amount that can be claimed.

An example is when we have Bob and Bill who own a farm together and have one insurance policy that has both their names listed. Bob has his own house and so does Bill. One day when working in the fields Bill drives a piece of equipment into Bob and injures him quite badly. Bob requires hospitalization and will have a long-term disability.

Bob can sue Bill for his injury and the insurance policy will respond. This is the crossover of liability.