Insurance SIRs and Deductibles: Impact on Satisfaction of SIRs, Policy Limits, Duty to Defend, and Additional Insureds
Advocating Coverage Positions From Perspectives of Insureds and Insurers in CGL, Professional Liability, and Property Damage Policies
About the Course
Introduction
This CLE course will provide guidance to insurance counsel on the primary differences between self-insured retentions (SIRs) and deductibles. The panel will outline how the application of these two distinct risk retention vehicles impacts the defense and/or coverage obligations of both insurers and policyholders.
Description
With many companies seeking to control insurance costs by increasing SIRs and deductibles, counsel must consider the impact of these risk retention vehicles on coverage and other obligations of the parties.
SIRs present significant issues during claims settlement, such as whether the insured or its insurer controls settlement decisions. Litigation has ensued over an insurer's obligations when the insolvent policyholder is unable to pay its SIR, particularly during recent years of business bankruptcies.
One hotly litigated topic is whether the insured must pay the SIR itself or whether it can satisfy it by applying payments made through "other insurance." Whether the insurer's duty to defend attaches prior to exhaustion of the SIR is also often contested by parties.
Listen as our authoritative panel of insurance counsel guides practitioners in navigating the impact of policy deductibles and SIRs on key coverage issues and obligations of the parties.
Presented By
Mr. Friedman provides corporate insurance counseling to companies in Florida, the Caribbean, New York, and other U.S. and foreign jurisdictions. He also advised the State of Florida on insurance policy issues. He writes extensively about insurance coverage for many publications, including National Underwriter, Business Insurance, Risk & Insurance, South Florida Business Journal, and Harvard Law Record.
Mr. Guardaro leads the firm’s Appellate & Motions Practice and oversees complex litigation matters. He has extensive experience in medical and legal malpractice, insurance coverage, and tort defense. Mr. Guardaro's practice also encompasses New York Labor Law, product liability, land use and condemnation matters, commercial tenancy disputes, municipal law, and zoning and planning. He has successfully challenged some of the largest and most complex damage verdicts in New York, including Sence v. Atoynatan, one of the first cases to invoke the New York Indemnity Fund and the state’s structured judgment law, and Fellin v. Sahgal, involving a $112 million medical malpractice verdict that was ultimately set aside and dismissed. Mr. Guardaro's appellate and trial work has also broken new ground in insurance coverage (QBE Insurance v. Ajdo), New York Labor Law liability (Alvarado v. French Council LLC), and related areas.
Mr. Pedro joined Axon Underwriting in August 2023 as In-House Counsel. He has practiced law for over 20 years focusing on a diverse insurance coverage counseling and litigation practice. Mr. Pedro's practice has encompassed a wide range of complex coverage matters, including commercial general liability, directors and officers, errors and omissions, cyber and data loss, professional liability, employment practices, and first-party property. Throughout his career, he has litigated construction accidents, transportation, subrogation, products liability, premises liability, copyright, and other civil litigation matters.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Thursday, April 3, 2025
- schedule
1:00 p.m. ET./10:00 a.m. PT
- Distinctions between SIRs/deductibles and impact on limits and defense costs
- Attachment of SIRs/deductibles
- Number of SIRs/deductibles and the potential for stacking
- Application of SIRs as "other insurance"
- Obligation to pay SIRs/deductibles; insureds vs. additional insureds
- Insolvent insured unable to satisfy SIRs
- Satisfaction of SIRs/deductibles through payments by other insurers
The panel will review these and other key issues:
- How do the distinctions between SIRs and deductibles impact limits and defense costs?
- Can a party other than the named insured satisfy the insured's deductible or SIR obligation?
- How do defense costs impact an insured's deductible or SIR obligation?
