Verne Pedro, managing attorney of Fullerton Beck’s New Jersey office and an insurance coverage attorney, recently presented at the Strafford live continuing legal education (CLE) webinar titled, “Self-Insured Retentions & Deductibles: Key Coverage Issues,” on Wednesday, July 22, 2020. The CLE guided insurance counsel through the primary differences between self-insured retentions (SIRs) and deductibles and outlined how the application of these two distinct risk retention vehicles impacts defense and/or coverage obligations of both insurers and policyholders. The agenda included the following topics, of which Verne presented the last two.

  • Distinctions between SIRs/deductibles and impact on limits and defense costs
  • Attachment of SIRs/deductibles
  • Number of SIRs/deductibles and the potential for stacking
  • Application of SIRs as “other insurance”
  • Obligation to pay SIRs/deductibles and insureds vs. additional insureds
  • Insolvent insureds unable to satisfy SIRs
  • Satisfaction of SIRs/deductibles through payments by other insurers

Among the key questions the panel reviewed were:

  • How do the distinctions between SIRs and deductibles impact limits, control of the defense, and settlement?
  • Can a party other than the named insured satisfy the insured’s deductible or SIR obligation?
  • How do defense costs impact an insured’s deductible or SIR obligation?

If you have any questions involving these evolving issues, Verne can be reached at or (732) 515-6293.

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