What does the Cross-Liability provision do in a CGL policy?

• A. Each insured is treated as separately insured; claims between insureds are covered if allowed
• B. It merges all insureds into a single entity
• C. It provides coverage only to the named insured
• D. It excludes insureds from coverage for claims against each other

Answer: (A)

The Cross-Liability provision ensures that claims between insureds are covered as if each insured had their own policy. In a CGL policy with multiple insureds, this clause treats every insured as a separate entity, so if one insured sues another (or a third party sues one insured for damages caused by another), the claim can be covered under the policy up to the applicable limits. This prevents inter-insured lawsuits from being treated as a single claim against one policyholder and helps keep coverage intact for both parties.

That’s why the correct choice is that each insured is treated as separately insured; claims between insureds are covered if allowed. The other options don’t fit because the provision does not merge all insureds into one entity, it does not restrict coverage only to the named insured, and it does not exclude insureds from coverage for claims against each other.