The Problem With Noncumulation Clauses

Law360, New York (July 1, 2013, 11:48 AM EDT) -- Imagine the following scenario: Your company faces thousands of lawsuits because years ago, it produced a product that people now say is dangerous. As the claims quickly burn through your primary liability coverage, you turn to your excess insurance company for help. They decline coverage.

Puzzled, since you’ve always been timely with your insurance premiums, you ask why. The insurance company points to obscure language buried in its policy that says something like, “It is agreed that if any loss covered hereunder is also covered in...
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