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
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 is the leader of the Firm’s Appellate and Complex Litigation Department and has broad experience in appellate practice, insurance coverage, tort defense work (including Labor law, medical and legal professional liability, product liability), land use, condemnation, commercial tenancy disputes, municipal law, municipal code drafting, municipal zoning and planning practices and insurance policy drafting. He has a proven track record in successfully managing complex projects and outcomes through advanced creative legal solutions in commercial and personal line defenses. Mr. Guardaro is active in trial monitoring programs throughout the nation where he works with local counsel to defend and resolve complex cases.
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?
