A more thorough explanation:

Definition: An equal-shares clause is a provision in an insurance policy that requires the insurer to pay its fair share of a claimed loss.

Example: Let's say a building insured by two different insurance companies suffers damage from a fire. The total cost of the damage is $100,000. If both insurance policies have an equal-shares clause, each insurer would be responsible for paying $50,000 towards the claim.

Explanation: The equal-shares clause ensures that each insurer pays their fair share of the loss. In the example above, both insurers are responsible for paying half of the total cost of the damage, which is $50,000 each. This clause helps to prevent one insurer from bearing the entire burden of a loss, which could be unfair and financially damaging.