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<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>⚖️ &#039;&#039;&#039;Several liability clause&#039;&#039;&#039; is a contractual provision commonly found in [[Definition:Co-insurance | co-insurance]] and [[Definition:Subscription market | subscription market]] placements — particularly within the [[Definition:Lloyd&#039;s of London | Lloyd&#039;s]] and London markets — stipulating that each [[Definition:Underwriter | underwriter]] or [[Definition:Insurance carrier | insurer]] participating in a risk is liable only for its own individual percentage share and not for the obligations of any other participant. In practical terms, if one of five co-insurers on a [[Definition:Slip | slip]] becomes [[Definition:Insolvency | insolvent]], the remaining four are not required to absorb the defaulting party&#039;s portion; the [[Definition:Policyholder | policyholder]] bears the shortfall on that share.<br /> <br /> 🔗 The clause operates as a structural safeguard for participating insurers in markets where large or complex risks are routinely divided among multiple capacity providers. On a Lloyd&#039;s [[Definition:Slip | slip]], for example, several [[Definition:Lloyd&#039;s syndicate | syndicates]] each take a stated percentage line, and the several liability clause ensures that each syndicate&#039;s exposure is capped at exactly that percentage of any [[Definition:Claim | claim]]. This contrasts with [[Definition:Joint and several liability | joint and several liability]], where any one party could theoretically be held responsible for the entire amount. The distinction is critical in international placements where participants may be domiciled in different regulatory jurisdictions — a syndicate in London, a carrier in Bermuda, and another in Singapore — each subject to different [[Definition:Solvency | solvency]] regimes and legal frameworks.<br /> <br /> 📌 For [[Definition:Insurance buyer | insurance buyers]] and their [[Definition:Insurance broker | brokers]], the several liability clause introduces [[Definition:Counterparty risk | counterparty risk]] at the individual line level, making [[Definition:Security vetting | security vetting]] of each participant essential rather than optional. A broker constructing a placement must ensure that every line is backed by a financially sound insurer, because the policy&#039;s effective coverage is only as complete as the collective ability of all participants to pay. The clause also influences how [[Definition:Reinsurance | reinsurance]] treaties and [[Definition:Facultative reinsurance | facultative certificates]] are structured, since reinsurers similarly insist on several — rather than joint — liability when multiple parties share a layer. Understanding this clause is fundamental to navigating any subscription-based insurance or reinsurance market worldwide.<br /> <br /> &#039;&#039;&#039;Related concepts:&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Co-insurance]]<br /> * [[Definition:Subscription market]]<br /> * [[Definition:Joint and several liability]]<br /> * [[Definition:Lloyd&#039;s syndicate]]<br /> * [[Definition:Counterparty risk]]<br /> * [[Definition:Security vetting]]<br /> {{Div col end}}</div>

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