Long Tail Claims

Abstract

Long Tail Claims are claims that involve a continuous, progressive or repeated injury over long periods of time that implicate multiple policy years. They often include both primary and excess coverage.

There are basically four common trigger theories that have been adopted in the United States: Manifestation Trigger, Exposure Trigger, Continuous Trigger and Injury in-fact Trigger. Allocation is how a covered loss will be apportioned among multiple policies. Courts generally are divided between two allocation methodologies: All Sums and Pro-Rata approach.

Practitioners should be mindful that there are a myriad of factual scenarios presented in long tail claims involving environmental pollution and seepage, construction defect claims and even cyber liability claims.

It is absolutely necessary for counsel to read and understand the case law of the jurisdiction that will be applied by the court in deciding the insurance coverage dispute.

Keywords: Environmental Law, Long Tail Claims, Asbestos Claims, Litigation, Trial Practice