Insurance Defense and Coverage
Defense and Indemnity
Equitable contribution allows an insurer that paid more than its share of a covered loss to recover from co-insurers on the same risk. It arises between carriers rather than through the insured's rights.
It is distinguished from equitable subrogation, which asserts the insured's rights against another party.
Alternative Names:
Insurer Contribution, Equitable Contribution
Why it Matters?
Contribution actions follow most multi-carrier losses and are typically resolved between carriers without the insured's involvement, but they can affect the insured when they delay resolution of the underlying claim. Methods of apportionment vary widely, including equal shares, proration by limits, and proration by time on the risk, and the applicable method can change a carrier's share substantially.
Frequently Confused with
Related terms
Frequently asked questions
How is contribution apportioned among insurers?
How does contribution differ from subrogation?
