What is the definition of Apportionment?

Apportionment refers to the equitable or proportional division of loss (from a claim made) among more than one insurer. Meaning if there are two or more insurers that cover the exact same loss, they will proportionately divide the amount to be paid to the claimant, based on the amount of loss they cover.

For example, a house is insured under different insurance policies and companies. Policy A covers $80,000, Policy B covers $50,000, Policy C has a coverage of $70,000 and Policy D covers $60,000, with the total coverage amounting to $260,000.  When the insured makes a claim because of damage to the house, Policy A will pay 30.77% of the loss, Policy B will pay 19.23%, Policy C will pay 26.92% and Policy D will pay 21.43% of the loss being claimed.

• Businessowners Policy / BOP
• Competitive State Fund
• Excess and Surplus Lines
• Employer’s Liability
• Blanket Insurance