Insurance Defense and Coverage
Defense and Indemnity
Other insurance clauses take several forms: pro rata clauses sharing the loss by limits, excess clauses making the policy secondary to other available coverage, and escape clauses purporting to eliminate coverage entirely where other insurance exists.
Conflicting clauses between policies frequently produce circular results.
Alternative Names:
Other Insurance Provision, Priority Clause
Why it Matters?
These clauses determine which carrier defends and pays first, and the analysis matters most in construction and transportation where additional insured status creates overlapping coverage. Where two policies each claim to be excess, courts commonly declare the clauses mutually repugnant and prorate. Targeted tender rules in some states let the insured choose which carrier responds, overriding the clauses entirely.
Frequently Confused with
Related terms
Frequently asked questions
What happens when two excess clauses conflict?
What is targeted tender?
