Co-insurance

A coinsurance is the participation of several insurance companies on the insurance of the same risk . This form of insurance is common when covering large risks, mainly in the industrial sector.

Several legally independent contracts are combined in one insurance policy . Each insurance company is only liable for its share of the total sum insured, so there is no joint liability .

An insurance company is usually referred to as a "leader". The "leader" conducts the correspondence with the policyholder, collects the insurance premiums for himself and his co-insurers and regulates any damage. For this, the co-insurers pay the leader a commission , the so-called management commission or cost premium , depending on what has been agreed.

Co-insurance can be divided into the usual form of open and concealed or silent co-insurance. The latter is similar to an insurance pool (e.g. so-called "aviation pool", "atom pool" or "pharmaceutical pool"), but is not the same.

Each insurance company is considered in relation to the policyholders as insurers , making direct contractor (as opposed to reinsurance , where only the insurer has a contract with the reinsurer and thus can make even this a claim).