Made with FlowPaper - Flipbook Maker
JULY / AUGUST 2025 FURTHERING THE HIGHEST STANDARDS OF CLAIMS AND LITIGATION MANAGEMENT Reclaiming the Conversation on the Seven-Figure Reality Property Claims: Under Investigation How to Handle Claims and Litigation What Claims and Litigation Professionals Can Learn From the Court’s Latest Term Lessons From the Supreme Court JULY / AUGUST 2025 DIGITAL EDITION SPONSORED BY:Was it a system malfunction? Human error? Or incendiary? In the aftermath of a fire or explosion, the questions are inevitable. To the untrained eye, the answers can be as elusive as they are critical. Rimkus forensic investigators are experts at piecing together the charred remains of such devastating events to determine the origin and cause of fire and explosions. Our teams have done it thousands of times. If you’re facing a complex forensic challenge of any kind, count on us to uncover the facts. YOU HAVE QUESTIONS. WE PROVIDE ANSWERS. +1 800 580 3228Consultants. Experts. Innovators.™rimkus.com WHAT HAPPENED? WITH SO MUCH AT STAKE, YOU NEED TO KNOWJULY / AUGUST 2025 FURTHERING THE HIGHEST STANDARDS OF CLAIMS AND LITIGATION MANAGEMENT Reclaiming the Conversation on the Seven-Figure Reality Property Claims: Under Investigation How to Handle Claims and Litigation What Claims and Litigation Professionals Can Learn From the Court’s Latest Term Lessons From the Supreme CourtWe connect displaced families with housing that fi ts—fast, compassionate and tailored to their needs. When disaster strikes, stability matters From natural catastrophes to everyday incidents, housing loss disrupts lives. In these moments, insurance carriers and temporary housing providers become essential—off ering comfort, continuity, and a path to recovery. Most placements last under 30 days, often in hotels. But no two policyholders are alike. Pets, accessibility, and family needs all aff ect placement—60% of requests involve pets, and 70% of those include multiple animals. Restrictions and special requirements can quickly complicate the process. Crawford simplifi es it all—matching policyholder needs with pre-vetted housing that fi ts their circumstances and ALE limits. One impartial process. Faster placements. Better outcomes. Temporary housing by the numbers: $4.5B+ annually in carrier spend #2 claims cost—second only to restoration 6.5M+ hotel nights per year 12M+ nights in rentals, apartments, and RVs Crawford Temporary Housing Solutions is built for today’s demands—scalable, tech-enabled, and focused on delivering results for carriers and relief for policyholders. Scan the QR code to discover how how Crawford Temporary Housing Solutions can transform your claims process and experience. Learn more at www.crawco.com/services/temporary-housingTHECLM.ORG/MAGAZINE CLM MAGAZINE 3 CLM MAGAZINE JULY / AUGUST 2025 >>>CONTENTS 16 LESSONS FROM THE SUPREME COURT What Claims and Litigation Professionals Can Learn From the Court’s Latest Term 20 RECLAIMING THE CONVERSATION A Cold War Tale and Our Seven-Figure Reality 24 HOW TO HANDLE CLAIMS AND LITIGATION Industry Pros Offer Tips and Advice on Their Jobs and the Challenges They Face 30 UNDER INVESTIGATION The Fundamentals of Property Claims Investigations and the Role of SMEs 34 VOICES Getting to Know: Phyllis Modlin, Markel FEATURES 4 FRONT DESK The Joy of Being a Non-Profit 6 THE $2 MILLION CONVERSATION YOU’RE NOT HAVING Taking a Proactive Approach to Counsel Selection 8 UNMASKING PFAS Examining an Innovative Product Identification Discovery Process in PFAS AFFF Multidistrict Litigation COLUMNS 16 30 8 20 AROUND THE CLM 34 JULY / AUGUST 2025 DIGITAL EDITION SPONSORED BY: 64 CLM MAGAZINE JULY / AUGUST 2025 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 4 • VOL. 9 REPRINTS For reprints and licensing please contact Jeremy Campbell at jeremy.campbell@TheCLM.org or 513-377-7228. CLM Magazine is published bi-monthly and covers news and topics of interest to insurance claims, risk, and litigation management professionals. Copyright © 2025 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. A publication of FRONT DESK >>> CLM has always been, and always will be, a vibrant community created by and for claims and litigation management professionals and insurance defense counsel. When CLM joined The Institutes family of companies in 2018, we also became part of an amazing non-profit organization focused on risk management and insurance. Being a non-profit allows CLM to strengthen our focus on networking, education, and collaboration—with serving our membership community as the top priority. The CLM community is strong, supportive, and collaborative. I am immensely grateful for all of you who contribute your time and knowledge to help educate others. I know how much work goes into writing an article, planning a local chapter event, or creating a conference session or webinar. The willingness of so many to share for the good of others is amazing and appreciated. Throughout my career, I’ve worked in many types of organizations—privately held, mutuals, publicly traded, and non-profit. I have found working for an organization whose focus is on serving its clients or membership to be more personally fulfilling than working for an organization focused solely on profit for personal gain or for investors. Of course, we need to do well to be able to do good, but the aim of being a financially viable organization is so we can serve our membership. The Joy of Being a Non-Profit There is beauty in being able to focus on serving a membership community. It’s what the CLM staff does every day. Our focus is on leading and facilitating all the amazing work created by each of you. As part of a non-profit, we can remain objective and impartial, and focused on the collective interests of the claims and litigation management community. When a company sponsors a CLM event, buys an ad, or supports a Local Chapter, that money funds our focus on networking, education, and collaboration. It supports efforts like the CLM Litigation Management Task Force that is working hard to address issues like attracting the next generation of talent, restoring the carrier-law firm business partnership, and educating professionals on emerging issues such as third-party litigation funding. That revenue supports local and national events that help build networks of professionals and foster meaningful relationships. It funds the dozens of free webinars CLM hosts every year (most offering CE and CLE credit at no cost). For me, being part of a non-profit has special meaning because, at the end of the day, week, and year, I know my focus is on our membership community and issues critical to claims and litigation management. It’s truly an honor to work with and serve everyone within CLM. Susan Wisbey-Smith President wisbey-smith@theinstitutes.org6 CLM MAGAZINE JULY / AUGUST 2025 W hen the process server arrives at your insured’s door with a lawsuit, the last thing you want to hear is, “We never agreed to let you pick our attorney.” Yet this exact scene occurs in claims departments across the country every week, turning routine defense assignments into costly coverage disputes that could have been avoided with a simple conversation during the underwriting process. The irony? Policy language probably (though not always) gives insurers the right to choose counsel, but good luck explaining that to an angry policyholder who has already hired a $700-per-hour corporate attorney and threatens bad faith litigation if you do not pay the bill. Five minutes of uncomfortable conversation at the policy placement stage can save you from five months of depositions, discovery battles, and bad faith litigation down the road. The foundation of effective claims management begins well before the first loss is reported. When policy language supports your position, proactively notify prospective insureds and their insurance brokers that the claims department usually selects defense counsel for liability cases. This early transparency helps avoid confusion and disagreements when litigation occurs. While exceptions exist—such as clouded coverage situations, reservation of rights scenarios, or coverage disclaimers—most liability insurance policies grant the insurance company either implied or explicit authority to pick defense counsel. Rather than leaving this understanding to chance or policy hair-splitting, make it an explicit part of placement discussions. THE STRATEGIC ADVANTAGE OF EARLY COMMUNICATION A proactive approach is vital: Defuse potential friction points before binding coverage. If choosing counsel could be a dealbreaker for a prospective insured, it is much better to identify this during underwriting rather than amid the chaos of active litigation. When the process server delivers the lawsuit and all parties are “on the clock” to secure representation and file a responsive answer, the last thing needed is a heated debate about attorney selection. The $2 Million Conversation You’re Not Having Taking a Proactive Approach to Counsel Selection By Kevin Quinley CLAIMS MANAGEMENT >>> Kevin Quinley is the founder and CEO of Quinley Risk Associates, LLC. kevin@kevinquinley.com. THECLM.ORG/MAGAZINE CLM MAGAZINE 7 Do you like the taste of Maalox? Fire drills create needless pressure, delay critical defense activities, and can expose both the insurer and insured to procedural defaults or missed deadlines. By addressing these expectations early, you can transform a potential crisis into a manageable business discussion. UNDERSTANDING CLIENT PERSPECTIVES: THE WILLING MAJORITY Fortunately, most clients readily accept insurer-selected counsel arrangements. Many policyholders prefer this approach, recognizing they lack the specialized knowledge to identify the most qualified attorneys for specific types of civil defense work. They understand that selecting and managing defense counsel is part of the claims department’s core competency—it is what you do every day. Many clients appreciate that insurance professionals have developed relationships with attorneys who specialize in various practice areas, understand coverage issues, and have proven track records in similar cases. They are content to delegate this responsibility to the experts. ADDRESSING COMMERCIAL ACCOUNT CONCERNS However, commercial accounts often present different dynamics. In many risk management circles, the term “insurance panel counsel” carries negative connotations. Sophisticated buyers may harbor assumptions that insurance- appointed attorneys are inferior “ham- and-egg” practitioners chosen primarily for their willingness to accept discounted hourly rates. This (mis)perception creates several challenges: Fee-Based Assumptions. Some corporate policyholders operate under the misguided belief that a $500-per- hour attorney is inherently superior to a $250-per-hour lawyer. When facing litigation covered by insurance, they resist being represented by what they may view as “budget” counsel. Relationship Preferences. Commercial clients may have established relationships with particular attorneys or law firms, often through transactional work or personal connections. Their $700-per-hour corporate counsel may advocate for expanded representation, suggesting that the insured needs independent advocacy to protect their interests fully. Loyalty Concerns. Perhaps most notably, some commercial accounts are concerned that panel counsel’s primary allegiance is to the insurance company rather than the policyholder. They worry that attorneys relying on insurer referrals will favor the carrier’s interests over their own. While these concerns are often unfounded, they are understandable from the client’s perspective. Law firms often rely on steady referral streams from insurance companies and naturally want to maintain those relationships. Meanwhile, their interaction with any particular policyholder may be limited to a single case rather than an ongoing partnership. BUILDING A BRIDGE TO ACCEPTANCE A key to overcoming these objections lies in education and relationship building. Claims professionals must be prepared to articulate the concrete benefits of using carefully selected panel counsel. This involves demonstrating how insurance companies’ systematic approach to attorney selection actually serves the insured’s interests better than ad hoc attorney selection. Success in this area requires moving beyond defensive responses to client concerns and instead presenting a compelling case for why the insurance company’s counsel selection process delivers superior results. MAKE THIS CONVERSATION COUNT Do not wait for a claim to have this crucial conversation. Integrate counsel selection discussions into every commercial placement meeting. Create standard talking points that address common concerns proactively. Develop case studies and success stories that demonstrate the value your panel counsel delivers. Train your underwriting team to present counsel selection as a valuable service benefit, not a policy restriction. Equip them with concrete examples of how your claims department’s attorney relationships have delivered favorable outcomes for similar insureds. Document these conversations in your underwriting files. When claims arise, having a written record of the insured’s acknowledgment and acceptance of counsel selection procedures can prevent disputes and bad faith allegations. Partner with panel counsel to develop materials that showcase their qualifications, specializations, and track records. Combat negative perceptions with positive proof of competence and results. Discussing counsel selection rights is not just about avoiding conflicts— it is also about demonstrating the professional value your claims operation brings to the insurance relationship. Make it count, make it early, and make it part of your standard practice. Your future claims handling will be smoother, more efficient, and less vulnerable to bad faith allegations when expectations are clear from the start. Some simple math: five minutes of proactive conversation during placement beats five months of litigation headaches later. Every day you delay implementing standardized counsel selection discussions is another day you are rolling the dice on a potential dispute. Panel counsel did not earn their roster spots by accident; they are there because they deliver results, cost-effectively. It is time to start selling that value proposition from day one, not defending it from the witness stand. The question is not whether you can afford to have these conversations with every commercial account; the question is whether you can afford not to. KNext >