Stacking Commercial Business Insurance Coverage Policies: Insurer and Policyholder Perspectives

One of the most complex issues in insurance coverage disputes, particularly those involving long-tail claims such as asbestos bodily injury and environmental claims, is how to allocate liabilities among the many policy years often triggered by losses.

Allocation methodologies vary between pro rata vs. all sums jurisdictions. Issues relating to stacking offer additional complications. Stacking insurance policy limits across multiple policy periods leads to each policy responding to the claim up to the full limits of the policy. Not all jurisdictions allow stacking. An ancillary issue involves whether it is appropriate to stack self-insured retentions.

Listen as our authoritative panel of insurance coverage practitioners reviews the evolving law on stacking of commercial insurance policies, and jurisdictions that allow stacking and those that do not. The panel will also discuss specific policy provisions and insurance policy interpretation maxims typically implicated in disputes between insurers and policyholders on stacking of policies.

1. Common losses in which stacking is implicated
2. Types of policies that may be stacked
3. Difference in court interpretations between pro rata vs. all sums jurisdictions
4. Stacking of self-insured retentions
5. Applicable policy provisions and contract construction principles

The panel will review these and other key issues:

• What are the common losses in which stacking is implicated and what kinds of policies may be stacked?
• What jurisdictions allow stacking of multiple years of coverage?
• How have courts in pro rata vs. all sums jurisdictions differed in their interpretations and applications of insurance policy stacking?
• What insurance policy provisions and construction principles are applicable in interpreting the permissibility of stacking?