What term refers to the situation when two insurance policies cover the same risk?

The term "concurrent coverage" is used when two insurance policies provide coverage for the same risk. This situation often arises when an individual or entity has multiple policies that address the same exposure or liability. Concurrent coverage allows for different policies to respond to a claim, usually providing a more comprehensive safety net for the insured.

In the context of insurance, having concurrent coverage can be beneficial, as it can result in combined limits of protection should a loss occur. However, it is important for the insured to be aware of how the policies interact, particularly around issues such as coverage limits, deductibles, and policy exclusions.

Understanding concurrent coverage is crucial for insurance adjusters as they assess claims and determine the best course of action for the policyholders involved. It ensures that the insured is adequately protected and can help in the effective management of risks across different policies.