Allocation of Loss in Insurance Litigation

Effective Scope of Coverage Strategies for Policyholders and Insurers

State Supreme Courts Tackle Allocation Issues

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

Conducted on Thursday, November 6, 2008

Course Materials


Business losses often arise in the context of many location and parties who are insured, uninsured or self-insured and involve multiple policies with differing coverage provisions, liability limits and time periods covered.

Courts, policyholders and insurers struggle with insurance allocation questions. The supreme courts of both Wisconsin and Massachusetts have accepted for review cases hinging on allocation issues, and the Vermont Supreme Court recently ruled on allocation in long-tail cases.

Counsel for policyholders and insurance companies must grasp different allocation methodologies and reallocation to ensure their clients’ needs are met.

Listen as our panel of insurance law attorneys examines allocation of loss in business insurance coverage, including allocation methodologies, court treatment, and effective scope-of-coverage strategies for policyholders and insurers.



  1. Brief overview
  2. Allocation methodologies
    1. All sums
    2. Pro rata
    3. Joint and Several Liability Approach
    4. Time on the Risk
  3. Allocation between Insurers and Policyholders
    1. Retentions, Deductibles and Retrospective Premiums
    2. Missing Policies
    3. Uninsured Periods of Gaps in Coverage
    4. Policies Issued by Insolvent Insurers
    5. Exhaustion of Available Coverage in a Policy Period
    6. Policyholder’s Role in Reallocation
  4. Allocation Among Insurers
    1. “Other insurance” Clauses That May Be Used to Reallocate Loss
    2. Multi-year Contracts and Stub Contracts
    3. Number of Occurences and Nature of Underlying Claims D. Applicable Limits
    4. Apportionment of Defense Costs
    5. Applicability of Exclusions
  5. Best practices


The panel will review these and other key questions:

  • What are the fundamental allocation methodologies in insurance and how do they work?
  • What role does the policyholder play in the reallocation process?
  • What is the impact of the number of occurrences analysis on the scope of coverage?


Martha E. Conlin
Martha E. Conlin
Cozen O'Connor

She concentrates her practice in all areas of insurance coverage, handling insurance matters related to asbestos,...  |  Read More

Rachel S Kronowitz
Rachel S Kronowitz


She focuses on strategic risk management, counseling corporations in structuring insurance and risk transfer...  |  Read More

Sherilyn Pastor
Sherilyn Pastor
McCarter & English

She is the Practice Leader of McCarter & English's Insurance Coverage Group and has secured hundreds of...  |  Read More

Paul A. Dame
Paul A. Dame
Wiley Rein

He represents insurers in coverage litigation under general liability, property and professional liability coverages in...  |  Read More

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