Travel Insurance When Booking On Behalf Of A Group.. Do Single Policies Cover All Or Share?

Henradical

(Mods, please move post if you think "insurance" is a better sub-forum category)

Hi all! I'm planning a trip with 3 other friends in June to Croatia. I want to ensure we have travel insurance policies that will cover the costs of a shared villa, flights, maybe car rental, in the event of cancelled flights, coronavirus, UK advise against travel, shut borders etc. etc.

I was planning on paying for everything (villa, flights etc.) myself, and my friends bank transferring me their share.

This got me wondering, in the event of cancellation, who get's the compensation. Assuming we all have "single multi-annual" policies with different providers, would either:
a) I claim the full amount back myself
b) everyone claims a 1/4 share back?

My current "single multi-annual" policy with LV has the following clause:

We won’t pay the proportion of any trip costs for a travelling companion not insured on this policy. This applies even if the trip was paid for by someone insured on this policy.

This then got me thinking, how would my friends claim through their individual policies, if they themselves were not the bill payer. The villa and flights would be booked through my name. Does this leave us all stuck in the middle, with no real cover?

So I ask the advise of MSE members, what is the recommended solution? I'd rather not purchase a separate "group" policy, as this would incur extra expense. I could get my friends to book the flights themselves, however I doubt the villa people would want to split an invoice 4 way.

Thanks!

Henry