"Other Insurance" Clauses In The Context Of The Duty To Co-Operate

INTRODUCTION

Insureds who make a claim under an insurance contract should not be surprised when the insurer's counsel requests a copy of any other insurance contracts that the insured had in place at the time of the loss. The insurer's counsel is not requesting those contracts as a pretext to denying coverage; rather, the insurer asks for those contracts to determine whether any other insurance contracts may contribute financially to the loss. The question of which insurers will contribute to the loss and in what amounts is answered once the insured has been fully indemnified.

CONTRIBUTION

An insured, faced with a loss that is or may be covered by multiple insurance contracts, subject to any contractual conditions to the contrary, may choose the insurer to which it makes its claim in the first instance. If there is only one insurance contract in place at the time of the loss, that insurer normally must pay the claim up to its limits if covered ( Family Insurance