Evaluating Self-Insured Retentions For Products Claims

Law360, New York (August 17, 2010, 12:51 PM EDT) -- Manufacturers with significant self-insured retentions, or SIRs, in their insurance programs are sometimes confronted with the following difficult question: Do multiple products claims brought by multiple claimants regarding the same product arise from a single “occurrence” or from multiple “occurrences” for insurance coverage purposes?

If such claims are deemed to arise from multiple occurrences, a policyholder with significant SIRs over several policy periods could effectively be without insurance coverage for hundreds or thousands of claims arising from the manufacture of one defective product. Fortunately for policyholders,...
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