Allocation of Liability for Continuous Damage Losses: All Sums v. Pro Rata

Best Practices for Policyholders and Insurers to Allocate Indemnity and Expenses

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

Conducted on Wednesday, April 18, 2012

Recorded event now available

or call 1-800-926-7926
Course Materials

This CLE course will provide insurance counsel with an analysis of the various allocation approaches in continuous damage claim cases and discuss case law developments and recent trends. The panel will outline approaches for insurers and policyholders to effectively leverage allocation methodologies.


Allocating indemnity presents challenges for both policyholders and insurers. In continuous damage claims, the issue can involve more than one policy period, an insurer with more than one policy in play, and multiple insurers.

Pro-rata allocation generally favors insurers and puts the policyholder at risk for the uninsured or underinsured portions of the loss. All sums allocation favors insureds who can choose from which policy or policies it will recover and mitigate the risk for uninsured periods.

Given the varying allocation approaches, the process can be complex and frustrating, particularly in states lacking definitive authority. Allocation raises a host of other concerns, such as the insured's ability to stack policies and the distinction between the duty to defend and duty to indemnify.

Listen as our authoritative panel of insurance attorneys examines the methods of liability allocation and offers best practices for addressing indemnity issues in continuous damage claims.



  1. All sums allocation post-Stringfellow
  2. Pro-rata allocation post-Boston Gas
  3. Strategies to negotiate effective allocation methodology
    1. Policyholder arguments
    2. Insurer arguments


The panel will review these and other key questions:

  • What is the distinction between the duties to defend and indemnify, and how does this impact allocation methodologies?
  • 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?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.


Laura A. Foggan
Laura A. Foggan

Wiley Rein

She co-chairs the firm’s Appellate Practice and is a member of the Insurance Practice. She advises and represents...  |  Read More

Robert M. Horkovich
Robert M. Horkovich

Anderson Kill & Olick

He is a trial lawyer with substantial experience in trying complex insurance coverage actions on behalf of corporate...  |  Read More

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