An analysis of recent allocation decisions

Abstract

Courts continue to confront allocation issues in insurance coverage litigation. Once a court determines how progressive losses will be allocated among multiple triggered policies, it must then decide whether and to what extent losses should be allocated to the insured for damage or injury that took place during periods in which there was no insurance. This article analyzes the most recent allocation decisions and discusses their impact on future coverage litigation. In addition, this article highlights those decisions that address the issue of allocation to the insured for damage or injury that took place during uninsured periods. The article concludes by noting that while apro‐rata time‐on‐the‐risk allocation approach represents the majority trend, some courts are still willing to hold that each triggeredpolicy must respond in full, up to the policy limits, with allocation among the insurers via the. “other insurance” clauses.