Cross Liability Clauses in Contracts & Insurance Cover

It is standard commercial practice for companies to enter into contracts, and many require the principal or landlord to be added to the Public Liability insurance policy.

This means you can have two different people or companies insured under one policy.


What is Cross Liability?

Cross-liability means that one insured under a policy can sue another insured when the same policy covers both parties. For example, a visitor to an office or building site who gets injured can sue both the occupier/ builder and the landlord/principal.

In this case, the insurer will cover both the occupier/ builder and the landlord/principal under the same insurance policy. It’s worthwhile noting that each will have its own lawyers to defend against the claim.


Insurance Policies and Cross Liability clauses

Cross-liability clauses are typically standard in commercial general liability policies and cover the landlord or principal if the insurer has notified them. Some insurers provide automatic cover.

It’s important to review your contracts and notify your insurance adviser when you enter into a contract requiring cross-liability for a principal or other interested party.  They will be able to check to see if the cover is in place or request the insurers note the policy.


To learn more about Cross Liability Clauses in Contracts, Contact Marine Insure on 07 2142 0355 or send us an email by clicking here.

This article was published by our AFSL Licensee, Insurance Advisernet Australia P/L,


This information and any accompanying material does not consider your personal circumstances as it is of a general nature only. You should not act on the information provided without first obtaining professional financial advice specific to your circumstances and considering the Product Disclosure Statement.