Stacking Commercial Insurance Coverage: Maximizing Policy Limits Available to Cover a Single Loss

Commercial policyholders that have purchased insurance over multiple policy periods or that are additional insureds on third-party insurance programs can suffer a single loss that triggers multiple insurance policies.  These policyholders may be able to require insurers in multiple policy periods or from multiple insurance programs to respond to that loss, a phenomenon that is sometimes referred to as “stacking.”  Insurers generally seek to avoid stacking wherever possible, while insureds generally favor the stacking of policy limits because it can significantly increase the amount of insurance coverage available to address a loss.

This program, presented by Jenner & Block partners David Kroeger and Brian Scarbrough, addresses the potential stacking of commercial insurance policies, the types of circumstances in which it can occur, and key insurance policy provisions relevant to a stacking analysis. 

Learning Objectives:

I.       Recognize the types of losses for which the stacking of commercial insurance coverage might be permitted

II.      Understand the types of commercial insurance policies that can be stacked and the policy provisions that are relevant to a stacking analysis

III.     Identify jurisdictions that allow, and do not allow, the stacking of commercial insurance coverage

IV.     Summarize the impact of stacking on deductibles and policy retentions