Part II The Bermuda Form in Detail, 8 Integration and Aggregation

Subject(s):

Contracts and insurance

This chapter discusses how the Bermuda Form deals with the question of how and when multiple personal injuries, instances of property damage, or offences within the ambit of advertising liability, may be combined and treated as a single occurrence, as defined. This is a key determination in the Bermuda Form, principally because the insurer's obligation attaches only where the ultimate net loss — paid by reason of liability for personal injury, property damage, or advertising liability of a type that qualifies pursuant to the definition of an occurrence — exceeds the amount of the scheduled per occurrence retention. While nothing in the policy form so specifies, in practice, insurers using this form historically agreed to engage only in excess of very large retentions.