What Method of Adding Together Losses from Insurance Claims is Correct for Determining Whether Umbrella Insurance Coverage is Activated?

The Lincoln Electric Company v. Travelers Casualty and Surety Company, et al., Case no. 2013-1088

U.S. District Court for the Northern District of Ohio

ISSUE: May an insured that has incurred losses and defense costs, and that has settled claims with multiple primary insurance policies by spreading the claims equally among the policies (pro rata basis), then add together its unreimbursed losses to reach an amount that triggers coverage by one or more excess (umbrella) insurance policies?