By Bridget A. Franklin
on March 2, 2016
The scenario: You have been injured and PretendCorp is liable to you in the amount of $100,000. PretendCorp has a commercial general liability insurance policy ("CGL"), which covers your claim. The CGL has a $20,000 self-insured retention ("SIR") clause that states that PretendCorp is to directly pay you before the insurance company is liable for the remaining amount of the claim. PretendCorp files for federal bankruptcy protection and, as a result, is not required to pay the SIR. Is the insurance company still liable for your claim? At least one federal court in Ohio says "yes." See Sturgill v. Beach at Mason Ltd. P'ship, No. 1:14cv0784, 2015 U.S. Dist. LEXIS 142490 (S.D. Ohio Oct. 20, 2015)....
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