Contribution

A corollary of indemnity meaning an equitable division between insurers where two or more insurers cover the same insured and the same risk. Each insurer pays a rateable proportion of the loss either in proportion to the sums insured (the maximum liability method) or in proportion to their respective independent liabilities (the independent liability method). Insurers may avoid contributing to ‘doubly’ insured losses by using a non-contribution clause.