Advocating Allocation of Liability and Exhaustion of Policy Limits: Policyholder and Carrier Perspectives

Indemnity Allocation Among Multiple Policies and Lines of Insurance, Horizontal vs. Vertical Exhaustion, Set-Off and Contribution

Recording of a 90-minute CLE webinar with Q&A

Conducted on Wednesday, February 5, 2020

Recorded event now available

or call 1-800-926-7926

This CLE course will provide insurance counsel with the latest developments in liability allocation, a review of critical issues in horizontal and vertical insurance, the interrelationship between the liability of the primary carrier and the excess insurer, allocation among multiple lines of insurance, and best practices to resolve priority of coverage disputes.


Allocating indemnity presents challenges for both policyholders and insurers, especially in continuous damage claims, where there is more than one policy period, an insurer with more than one policy in play, and multiple insurers. Allocation raises a host of other concerns, such as the insured's ability to stack policies.

Another issue that arises with increased frequency is the allocation among multiple lines of insurance. For example, what are the practice considerations when one claim impacts D&O, E&O, and CGL policies?

Practitioners face challenging issues when the parties disagree over who should pay a claim and the payment order among the applicable insurance policies. Counsel must understand when and how vertical and horizontal insurance exhaustion of policy limits apply and the principles related to triggering excess policies.

Unique challenges are present when the primary insurer settles a claim for less than the policy limits. Tapping the excess policies in these situations requires counsel to focus on the language of the policies and involves resolving a myriad of legal issues.

Listen as our authoritative panel of insurance attorneys examines the latest developments in liability allocation, the application of vertical and horizontal exhaustion of policy limits, allocation among multiple lines of insurance, and best practices to advocate and resolve priority of coverage disputes involving allocation of liability and exhaustion of policies.



  1. Allocation of indemnity among multiple policies; all sums vs. pro-rata allocation
  2. Allocation among multiple lines of insurance
  3. Strategies to negotiate effective allocation methodology
  4. Horizontal vs. vertical exhaustion of policy limits
  5. Set-off and contribution in settlement


The panel will review these and other key issues:

  • Can the limits in triggered policies be stacked in a continuous loss?
  • What steps can policyholders and insurers take to recover damages and defend coverage under policies when facing continuous damage claims?
  • What are the practice considerations when one claim impacts D&O, E&O, and CGL policies?
  • How can counsel resolve issues that arise between the excess carrier and primary carrier when the primary carrier settles for less than the policy limits?
  • What are the different rules for tapping excess insurance for continuous injury claims, and how should counsel best reconcile these rules?


Lavella, Justin
Justin F. Lavella

Blank Rome

Mr. Lavella is a partner in Blank Rome’s policyholder-only insurance recovery practice, formerly the insurance...  |  Read More

Seaman, Scott M.
Scott M. Seaman

Hinshaw & Culbertson

Mr. Seaman's practice focuses on insurance, reinsurance, and commercial law and litigation. He has represented...  |  Read More

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