loss apportionment

In law, "loss apportionment" refers to the method of determining an insurer's share of liability for a loss when a property is covered by multiple insurance policies. This concept is closely related to "damages," which are monetary compensations for loss or injury caused by a wrongful act.12

Historically, the legal system often avoided apportioning blame between parties. This led to doctrines like "contributory negligence," where a plaintiff's own negligence could bar them from recovering any damages, even if the defendant was also at fault. However, modern legal systems, including those in English law and many U.S. states, allow for damages to be reduced equitably if the plaintiff contributed to their own injury.3

The principle of loss apportionment aims for a fairer distribution of responsibility when multiple parties are involved in causing a loss. This contrasts with older legal approaches that might have excused one party entirely if the other was also negligent.3