When other insurance is written on the same basis as a Commercial Property policy, what is the insurer obligated to cover?

In scenarios where multiple insurance policies are written on the same basis for Commercial Property coverage, the principle of contribution applies. This means that if there are two or more policies covering the same risk, the insurers will share the loss proportionately based on their respective policy limits. The insurer is obligated to cover only a share of the loss, rather than the entire amount or just the excess.

This principle ensures that no insured party receives a windfall from having multiple policies for the same risk, and it avoids situations where one insurer might be solely responsible for covering the loss when multiple policies exist. Therefore, the correct interpretation of the obligation in this context aligns with sharing the financial responsibility among the insurers based on their coverage limits, which is why the answer is that the insurer would cover a share of the loss.