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JULY / AUGUST 2024 FURTHERING THE HIGHEST STANDARDS OF CLAIMS AND LITIGATION MANAGEMENT Dispelling the Angry Jury Myth Making Nuclear Verdicts More Predictable A Consequential Term Supreme Court Takes On Settled Expectations— What Does It Mean for Claims and Legal Communities? JULY / AUGUST 2024 DIGITAL EDITION SPONSORED BY:World-class.Globalreach. 800.229.0302 rimkus.com WHAT HAPPENED? WITHSOMUCHAT STAKE, YOU NEED TO KNOW YOU HAVE QUESTIONS. WE PROVIDE ANSWERS. Determining the cause of an accident is no easy feat. It’s a science. Rimkus forensic engineers and consultants have decades of experience reconstructing accidents of all kinds to determine what happened and why. We also provide expert testimony at trial. If you’re facing a complex forensic challenge of any kind, count on us to uncover the facts.JULY / AUGUST 2024 FURTHERING THE HIGHEST STANDARDS OF CLAIMS AND LITIGATION MANAGEMENT Dispelling the Angry Jury Myth Making Nuclear Verdicts More Predictable A Consequential Term Supreme Court Takes On Settled Expectations— What Does It Mean for Claims and Legal Communities?World-class.Globalreach. 800.229.0302 rimkus.com WHAT HAPPENED? WITHSOMUCHAT STAKE, YOU NEED TO KNOW YOU HAVE QUESTIONS. WE PROVIDE ANSWERS. Determining the cause of an accident is no easy feat. It’s a science. Rimkus forensic engineers and consultants have decades of experience reconstructing accidents of all kinds to determine what happened and why. We also provide expert testimony at trial. If you’re facing a complex forensic challenge of any kind, count on us to uncover the facts.THECLM.ORG/MAGAZINE CLM MAGAZINE 3 JULY / AUGUST 2024 DIGITAL EDITION SPONSORED BY: CLM MAGAZINE JULY / AUGUST 2024 >>>CONTENTS 18 A CONSEQUENTIAL TERM Supreme Court takes on settled expectations—what does it mean for claims and legal communities? 22 MAKING NUCLEAR VERDICTS MORE PREDICTABLE Focus on prevention and what is controllable 26 THE CLOCK IS TICKING Effectively handling late-reported property claims 32 DISPELLING THE ANGRY JURY MYTH Empirical insights into damage awards in civil litigation 37 RECOGNIZING EXCELLENCE From CLM article author to award recipient 38 CAREERS Using AI to write your resume 39 BETWEEN THE LINES What is on your summer professional development reading list? 40 WEBINARS Keeping up with cannabis 41 EVENTS Upcoming events, chapter activities, and recent webinars 42 VOICES Getting to know Susan Wisbey-Smith, president of CLM FEATURES 4 FRONT DESK The summer of risk 6 EXPOSURE Storming into the record books 8 COMING SOON TO A WORKPLACE NEAR YOU Trending issues in workers’ compensation 10 TOP-10 DO’S AND DON’TS AT MEDIATION Key tips on how to be your best 12 TAKING THE COUNTRY FOR A SPIN A look at the unpredictability of tornadoes after an active spring 14 RE-THINKING FREIGHT IN A CHANGING WORLD The carmack amendment and modern logistics COLUMNS 18 32 8 39 42 12 AROUND THE CLM 374 CLM MAGAZINE JULY / AUGUST 2024 A publication of DIRECTOR OF CONTENT Phil Gusman ASSOCIATE EDITOR Angela Sabarese ASSISTANT EDITOR Fran Clark ART DIRECTOR/ PUBLISHING OPERATIONS MANAGER Jason T. Williams EDITORIAL QUESTIONS Phil Gusman phil.gusman@TheCLM.org PRESIDENT Susan Wisbey-Smith VP PARTNERSHIPS Jeremy Campbell SENIOR ACCOUNT EXECUTIVE Laurel Metz ACCOUNT EXECUTIVE Megan Josd ADVERTISING QUESTIONS Jeremy Campbell jeremy.campbell@TheCLM.org 513-377-7228 JULY / AUGUST • ISSUE 5 • VOL. 8 REPRINTS For reprints and licensing please contact Jeremy Campbell at jeremy.campbell@TheCLM.org or 513-377-7228. CLM Magazine is published monthly and covers news and topics of interest to insurance claims, risk, and litigation management professionals. Copyright © 2024 by the CLM. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the CLM. The views expressed in the articles are solely those of the authors or those interviewed and do not necessarily reflect the views or opinions of CLM or the companies in which the authors are employed. There has been no shortage of major news events over the past couple of months, and two in particular caught the attention of the insurance world: one manmade incident, and one natural catastrophe. These events not only caused losses for the industry, but also demonstrate the heightened level of risk we deal with in today’s world. On July 19, cybersecurity company CrowdStrike released a software update that impacted IT systems globally for computers powered by Microsoft Windows. Microsoft, in a blog post, estimates the CrowdStrike update affected 8.5 million Windows devices, or less than 1% of Microsoft machines. But Microsoft adds, “While the percentage was small, the broad economic and societal impacts reflect the use of CrowdStrike by enterprises that run many critical services.” Indeed, news feeds were filled with updates about major flight delays even days after the initial incident, and other industries affected included banking, finance, and health care. Insurer Parametrix said in a statement that U.S. Fortune 500 companies, excluding Microsoft, are expected to see direct financial losses of about $5.4 billion. Fitch Ratings, meanwhile, says global insured losses from the incident are expected to range “in the mid to high single digit billion [in U.S. dollars],” which Fitch says is unlikely to have a material impact on global (re) insurer financial results. BERYL SETS RECORDS Meanwhile, Hurricane Beryl formed as a tropical storm on June 29, rapidly intensified to a Category 5 hurricane, and ultimately made landfall near Matagorda, Texas as a Category 1 hurricane on July 8. Along the way, Beryl brought devastation to the Caribbean. Karen Clark & Co. (KCC) estimates U.S. insured losses around $2.7 billion, which includes privately insured damage to residential, commercial, and industrial properties and automobiles, as well as business interruption. CoreLogic estimates insured wind losses in Texas to be between $2.5 billion and $3.5 billion, and Moody’s RMS puts the range between $2.5 billion and $4.5 billion from wind, storm surge, and precipitation-induced flooding. Before the damage estimates were in, though, Beryl was a storm of consequence. Moody’s RMS pointed to a number of North Atlantic Basin records Hurricane Beryl now holds, including: easternmost hurricane to form in June, strongest hurricane in June, earliest Category 4 hurricane, and earliest Category 5 hurricane. Be sure to check out our magazine website, theclm.org/ magazine, for more in-depth coverage of these events. With much of hurricane season still to go and what seems like a riskier world in general, there will surely be more news to come for claims and litigation professionals. Phil Gusman Director of Content phil.gusman@TheCLM.org The Summer of Risk FRONT DESK >>>GET INVOLVED! WE VALUE THE INSIGHTS AND EXPERTISE OF OUR MEMBERS. WOULD YOU LIKE TO PRESENT A TOPIC YOU ARE PASSIONATE ABOUT? SUBMIT YOUR IDEAS FOR FUTURE WEBINARS (JUST EMAIL US: PROGRAMMING@THECLM.ORG). HOW TO REGISTER SIMPLY VISIT OUR WEBSITE USING THE QR CODE. DON’T MISS OUT ON THESE VALUABLE OPPORTUNITIES TO EXPAND YOUR KNOWLEDGE ON SPECIFIC TOPICS. JOIN US FOR A DYNAMIC AND ENGAGING LINEUP OF WEBINARS, DESIGNED TO KEEP YOU AT THE FOREFRONT OF ALL THINGS CLAIMS RESOLUTION AND LITIGATION MANAGEMENT. BEST OF ALL, ATTENDANCE IS FREE AND OPEN TO ALL – MANY OFFER CE/CLE AS A BENEFIT OF CLM MEMBERSHIP. YOUR GATEWAY TO INDUSTRY INSIGHTS: ATTEND OUR WEBINARS THECLM.ORG/WEBINARS6 CLM MAGAZINE JULY / AUGUST 2024 EXPOSURE STORMING INTO THE RECORD BOOKS Homes in Surfside Beach, Texas are flooded after Hurricane Beryl struck the area on July 8. Beryl hit Texas as a Category 1 hurricane. The storm set records as the earliest Category 4 hurricane, earliest Category 5 hurricane, and the easternmost hurricane to form in June, according to Moody’s RMS. PHOTO: BRANDON BELL/GETTY IMAGESNext >