BarbriSFCourseDetails

Course Details

This CLE webinar will review the rights and obligations of debtors and insurers when claims exist or have been made against a debtor with a self-insured deductible that it has not and cannot pay.

Faculty

Description

Many businesses manage risk and the cost of insurance with high deductibles or self-insured retentions. This approach is often attractive to policyholders that expect a large number of smaller claims, such as restaurants and retailers.

Whether there is coverage if these companies file bankruptcy and cannot pay the SIR or deductible depends on many variables: whether the policy is a guaranteed-cost or a loss-sensitive one; when coverage is triggered; whether only claims above a certain threshold are covered; and more.

If coverage does not exist until an SIR is satisfied, and the debtor cannot pay, courts differ regarding the effect on the insurer’s duty to defend/and or indemnify. Assuming an insurer does pay claims for which a deductible or SIR was not satisfied in accordance with the policy, bankruptcy courts vary on how they classify and treat the claim.

Listen as this experienced panel helps clarify the often confusing rights and obligations of debtors in bankruptcy and insurers when claims exist or have been made against a debtor with a self-insured deductible that it has not and cannot pay.

Outline

  1. Distinctions among types of policies
  2. Effect of policy type on parties
  3. Classification of claims

Benefits

The panel will review these and other important issues:

  • Is the payment of SIR or deductible an expense in the ordinary course of business or does it need court approval?
  • Should the right to pay SIR or deductibles be included in first-day motions?
  • How is a claim for SIR or deductible classified?
  • Can non-insureds satisfy the SIR?