Mass. View On Pro-Rata 'Time-On-The-Risk' Allocation

Law360, New York (August 11, 2009, 2:48 PM EDT) -- The Massachusetts Supreme Judicial Court recently held that where an insured “incurs covered costs as a result of ongoing environmental contamination occurring over more than one year and the insurer provided coverage for less than the full period of years in which contamination occurred,” the loss should be prorated among all the insurers on the risk during the relevant period.

The court further held that unless evidence permits a more accurate fact-based allocation of loss, the “time on the risk” method of allocation is most appropriate....
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