Where an insured places coverage with three different brokers, each broker will have to contribute to a loss, but the total paid to the insured may not exceed the loss itself.

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When an insured places coverage with multiple brokers, each broker (and their respective insurance companies) may contribute to a loss based on the terms of their policies. However, the total compensation from all sources combined will not exceed the actual value of the loss to prevent the insured from profiting from a claim. This principle ensures indemnity, where the insured is restored to their financial position prior to the loss but not allowed to gain financially from the insurance claim.

Where an Insured Places Coverage with Three Different Brokers, Each