Pro Rata v. All Sums: When Viking Pump Applies

The United States Court of Appeals for the Second Circuit recently changed the tune of a decades-old insurance coverage dispute when it decided to apportion liability exposure for multiple instances of environmental contamination on an “all sums” basis. In the matter of Olin v. OneBeacon, Olin, a manufacturing company, sought indemnity for remediation costs and other sums related to pollution cleanup at five of its manufacturing sites under several excess general liability policies. OneBeacon insured Olin under three excess umbrella
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Viking Pump’s Legacy: Virginia Court Holds “All Sums” Approach Applies to Excess “Quota Share” Layer Where Underlying Coverage was Exhausted

A federal judge in Virginia held the New York Court of Appeals decision in In re Viking Pump, Inc., 27 N.Y.3d 244 (N.Y. 2016) allowed for an insurer to apply an “all sums” allocation and seek the full limits of excess insurance policies — that formed part of a multi-year “quota share” layer — in a single year, without first establishing that the claims constituted a single loss or occurrence that is covered in whole or in part under another
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