With the rise in the value and number of insurance claims,
instances where the exposure reaches into excess layers of
insurance will be more common. As such, it is anticipated that the
number and nature of disputes between primary and excess carriers
will increase.
In the American context, the law regarding duties owed between
primary and excess insurers is well developed. Conversely, there
are very few reported Canadian decisions on the topic.
This article examines the nature and scope of the duties owed
between primary and excess insurers from a Canadian perspective,
including a consideration of common issues that arise when multiple
layers of insurance are potentially applicable to a claim.
