What does the term "peer liability" refer to in insurance?

The term "peer liability" primarily refers to a concept where responsibility or liability is determined based on the comparative level of fault of each party involved in an incident. In the context of insurance, this means that when multiple parties are responsible for a loss or damage, their liability is assessed and compared, enabling a fair distribution of damages based on the degree of their respective fault.

This principle is often applied in instances where more than one party may have contributed to the loss, allowing the court to allocate damages among those parties proportionately. This contrasts with other liability concepts, where liability might be treated as absolute or shared equally, regardless of the degree of fault. Understanding comparative liability is crucial for adjusters, as it influences how claims are settled and how recoveries are pursued from multiple liable parties.