Who Comes in Second? Vertical and Horizontal Policy Limit Exhaustion

Learn more about the concepts of vertical and horizontal policy limit exhaustion. When multiple policies are involved, the priority of coverage is relevant to determine whether vertical or horizontal policy limit exhaustion applies, as varied by jurisdictions.

Topics to be Included

Risk Transfer Methods:

• Upstream Party > Downstream Party: 
  • Contractual Indemnity 
  • Insurance
• Coverage Overlap 
  • Priority of Coverage
  • Which Policy Responds Second? 
• Priority of Coverage: State by State:
  • General: states applying horizonal exhaustion
  • General: States applying vertical exhaustion

Horizontal Exhaustion

• What is Horizontal Exhaustion? 
• Case Study Example
• Important Notes about Horizontal Exhaustion

Vertical Exhaustion

• What is Vertical Exhaustion?
• Case Study Example
• Important Notes about Vertical Exhaustion

Speakers

Tracy Saxe, Esq., Saxe Doernberger & Vita, P.C

Gunter Fernandez, Esq., Saxe Doernberger & Vita, P.C