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Broader Is Not Always Better: “Follow Form” Excess Insurance Policies And Optional Coverage Extensions – Cronos Group Inc. v Assicurazioni Generali S.p.A., 2022 ONCA 525 – Insurance Laws and Products

In many industries, an entity will obtain “primary”
insurance coverage and “excess” insurance coverage from
different insurers. Assuming the loss at issue is covered, the
excess policy will only be triggered if the monetary policy limits
of the primary coverage are exceeded by the value of the loss.

In Cronos Group Inc. v Assicurazioni Generali
,1 the Court of
Appeal for Ontario was tasked with interpreting the common
“follow form” clause found in excess insurance policies
where the primary policy provided an optional extension of coverage
that was not expressly provided for or excluded from the excess


Cronos Group held a primary insurance policy with AXA XL and an
excess insurance policy with Assicurazioni Generali S.p.A
(“Generali”) which covered the same policy period. The
primary policy included an optional extension period
(“OEP”). If…

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