Under all sums, each triggered policy is liable for the full loss up to its limits, based on language obligating the insurer to pay all sums the insured becomes legally obligated to pay. The policyholder may target a single policy year.
The paying insurer may then pursue contribution from other triggered carriers.
Alternative Names:
Joint and Several Allocation, All Sums Approach
Why it Matters?
All sums shifts the burden of allocation from the policyholder to the insurers, which is its central practical effect. A policyholder facing a long-tail liability can access a single favorable year's limits immediately rather than pursuing dozens of carriers, and uninsured years do not reduce recovery. That makes choice of law a decisive issue in environmental and asbestos coverage litigation.
Frequently Confused with
Related terms
Frequently asked questions
Can a policyholder choose which policy pays?
Do uninsured years reduce recovery under all sums?
