What does the Severability of Interests condition state?

The Severability of Interests condition states that coverage applies to each insured separately, as if no other insured existed. This principle is particularly important in insurance policies that cover multiple insured parties—such as family members in a homeowners policy or co-owners in a business policy.

When this condition is in effect, the actions or negligence of one insured do not affect the coverage provided to another insured under the same policy. For example, if one insured party is found liable for damages, this does not impact the coverage available to another insured party for their claims. Each insured is considered independently, ensuring that coverage continues for all parties involved, despite any issues related to the actions of others covered by the same policy.

This principle helps clarify the extent of coverage and reinforces the idea that each insured party's rights are protected, promoting fairness in claims processing and preventing one insured's actions from unduly prejudicing another.