A knock-for-knock agreement is not a regulatory requirement, but rather an understanding among insurers. This agreement was developed by the General Insurance Council, an interprofessional organization representing all non-life insurance companies. Thus, each insurer signs a toc-to-knock agreement with all other insurers, and they do so to prevent unnecessary litigation and delays from occurring by taking the case to court because of third-party policies. When negotiating the contract, it is very important that the wording is correct and that the company entering into the contract (and its insurers) understand the extent and limitations of the “toc-to-klop” regulation in order to avoid the “gaps” that lead to unlimited corporate liability – and if it is not possible to fill these gaps through negotiation. to obtain insurance coverage to fill these gaps. Knock-for-knock refers to an agreement between insurers that, in the event of an accident, everyone will pay for the damage caused to the insured vehicle with it without seeking guilt. The two main coverages in car insurance are third-party non-life insurance and clean ones. “Knock for knock” is also used in a certain analog sense, for example, the following, quoted in “Law at War,” by the U.S. Army website [1]: This is because to claim third parties, you have to bring the lost person to justice, and this could be a long and costly trial. Insurers also know this and therefore prefer to pay the damages through their own claims coverage rather than relying on the liability insurance of the insurer whose insured client is at fault. This is called the knock-for-knock agreement, and a quick dictionary search defines this term as an agreement between auto insurers that, in the event of an accident, any insurance will pay for the damage caused to the insured vehicle without attempting to determine the culpability of the accident. Compensation is generally awarded by each party on behalf of all employees and real estate within its “group.” Individuals and companies belonging to the “groups” of each contracting party are defined in the agreement and generally include a party`s subcontractors and affiliated companies, as well as all their employees, executives and guests.

Since a party is responsible for all claims to its group, it is important that the scope of each party`s “group” be carefully defined in the definitions.