As the global economic crisis continues to have an adverse impact on the economy, commercial insureds are increasingly looking for ways to tighten their corporate belts and cut costs. One risk management strategy related to such cost-saving efforts is to obtain commercial policies written with large self-insured retentions (SIRs) and higher deductibles. Insurance policies written with deductibles provide that the insurer will pay the defense and indemnity costs in connection with a covered claim, and then charge or bill back the deductible amount to the insured.
As a growing numbers of insureds elect to control more of their insurance costs by increasing SIRs and deductibles, a body of case law is beginning to emerge that highlights some of the issues that often accompany this decision. Michael A. Hamilton and Michael Murphy of Nelson Levine de Luca & Horst, LLP explore these issues in the latest exclusive online content from Risk Management. View the full article here.