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ComplianceStandard / Universal

Severability of Interests / Cross Liability

What this clause says

The General Liability policy shall include a Severability of Interests provision, treating each insured as if a separate policy had been issued to it.

What this means in plain English

Each insured under the policy is treated as if they had their own separate policy, so the sponsor (as an additional insured) cannot be denied coverage just because you (the named insured) did something wrong.

What it means for a CDMO program

Standard ISO CGL form already includes this. Easy compliance, but worth confirming the form number.

How this evaluates

The Decoder applies these rules in order; the first match wins.

  • cgl › form equals occurrence → Compliant: Standard ISO CGL includes severability.
  • cgl › form is not set → Borderline: Verify CGL is on a form that includes severability of interests.

See this in your MSA

Map this clause against your sponsor MSA.

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Related clauses

Common questions about this clause

Questions about compliance

Severability of Interests / Cross Liability - common questions

What does severability of interest mean?

Each insured under the policy is treated separately, as if they had their own policy. So if the sponsor (additional insured) sues the named insured (the CDMO), the policy still responds - the AI status does not waive the right to coverage.

Is this standard on CGL?

Yes - most CGL forms include severability automatically (often called "Separation of Insureds" condition). Sponsor MSAs require it explicitly to be sure.

Where can severability go wrong?

On manuscripted endorsements or non-standard forms (especially older or admitted-Lloyds policies). Verify it is present in writing before binding.