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SEPTEMBER / OCTOBER 2024 FURTHERING THE HIGHEST STANDARDS OF CLAIMS AND LITIGATION MANAGEMENT Crowd-Struck: Testing Claims and Coverage AI’s Endless Possibilities ...and Risks WHY PRESENTING A CASE FOR DAMAGES BEFORE THE JURY WORKS FOR THE DEFENSE the Drop Anchor SEPTEMBER / OCTOBER 2024 DIGITAL EDITION SPONSORED BY:888.CUSTARD Building Partnerships Since 1962. Providing quality Independent Adjusting and TPA Services in a wide range of areas, including: f Transportation f Property / Catastrophe f Heavy Equipment f General Liability f SIU Excellence in Claims Handling. CUSTARD.COMSEPTEMBER / OCTOBER 2024 FURTHERING THE HIGHEST STANDARDS OF CLAIMS AND LITIGATION MANAGEMENT Crowd-Struck: Testing Claims and Coverage AI’s Endless Possibilities ...and Risks WHY PRESENTING A CASE FOR DAMAGES BEFORE THE JURY WORKS FOR THE DEFENSE the Drop Anchorvertexeng.com EXPERTSWITNESS our When you need expert witness and consulting services that go beyond the basics, trust VERTEX to deliver excellence at every step. VERTEX specializes in forensics, commercial damages, delay analysis, government contracts, environmental, construction, and surety work. Our professionals bring subject matter expertise and unparalleled responsiveness ensuring thorough analysis and strategic insights. Witness what VERTEX can do for you. EXPERT WITNESSES ARCHITECTS ENGINEERS CONSTRUCTORS COST & SCHEDULING EXPERTS FORENSIC ACCOUNTANTS ENVIRONMENTAL SCIENTISTS INDUSTRIAL HYGIENISTS VERTEX Project # 10071: Boston University Center for Computing & Data SciencesTHECLM.ORG/MAGAZINE CLM MAGAZINE 3 CLM MAGAZINE SEPTEMBER / OCTOBER 2024 >>>CONTENTS 22 DROP THE ANCHOR Why Presenting a Case for Damages Before the Jury Works for the Defense 26 CROWD-STRUCK: TESTING CLAIMS AND COVERAGE Analyzing the Impact of the Massive CrowdStrike Outage 32 AI’S ENDLESS POSSIBLITIES ... AND RISKS Liability Looms as Doors Open for Advertising Professionals 37 THE ONES THAT STAND OUT CLM professionals share their unique claims stories. 38 NUCLEAR DISARMAMENT How to personalize the defendant and why it works. 39 EVENTS Upcoming events, chapter activities, and recent webinars 40 NATIONAL News and verdicts that affect you from across the country 42 VOICES Getting to know Sarah Bishop, major case director, IAT Insurance Group FEATURES 4 FRONT DESK The Storm That Roared 6 EXPOSURE Helene’s Destruction 8 DIVING INTO CMS’ UPCOMING REQUIREMENTS A Look at the New Medicare Reporting Rules for WCMSAs 10 A RISKIER LANDSCAPE FOR HOUSES OF WORSHIP Latest Trends and How to Mitigate Them 12 RISK AND RESTORATION Minimizing Liability, Reducing Expense, and Streamlining the Restoration and Recovery Process 16 AVOIDING THE MONSTER How to Avoid the Thermonuclear Verdict Flattening Your Defense COLUMNS 22 32 26 8 39 42 16 AROUND THE CLM 37 SEPTEMBER / OCTOBER 2024 DIGITAL EDITION SPONSORED BY: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 SEPTEMBER / OCTOBER • ISSUE 6 • 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. 4 CLM MAGAZINE SEPTEMBER / OCTOBER 2024 A publication of As insured loss estimates began to roll in for Hurricane Helene, it initially appeared the financial impact on the insurance industry would be sizable, but perhaps not the type of chart- topping losses one might expect from a storm of Helene’s size and strength. As I write this column, however, new estimates are being released, with CoreLogic now putting total public and private insured losses within a hefty range at between $10.5 billion and $17.5 billion. When Helene first made landfall, we appeared to catch a bit of a break, relatively speaking, as the storm missed directly hitting some of the worst-case-scenario population centers in Florida like Tampa and Tallahassee. Karen Clark & Company noted that most of the initial property damage occurred away from the landfall point, with coastal flooding particularly hitting the Tampa Bay-Clearwater-St. Petersburg region. If there was some comfort taken in where Helene made landfall, though, the storm had a nasty surprise in store with how much damage it brought far from the coast as it made its way through Georgia and North Carolina. Much of the nation’s focus has been on the devastation brought to mountainous areas of North Carolina due to unprecedented flooding. A report on The Weather Channel noted that the area experienced a rain event shortly before Helene brought even more heavy rain to the region. This combination, along with the terrain itself, created prime conditions for the flooding we have seen, setting up what will no doubt be a long, painful, and difficult recovery. As part of our focus at CLM on covering claims events in a variety of ways for our members, we have stayed on top of Helene developments primarily through our digital channel. Our web article, “Helene Takes Aim,” went live on Thursday, Sept. 26 as the storm approached the coast, and was updated throughout the day, into the night, and into the next morning (credit to CLM’s Angela Sabarese for staying on top of the updates through midnight). Our coverage continued the next week as loss estimates were refined and released. Meanwhile, as the full scope of damage and lessons learned become clearer, we will provide deeper analysis of the storm here in our print pages. This is an example of how we are working to provide a broader range of content to our membership. And, of course, there is always room for your participation. As I write, Hurricane Milton appears set to crash into Florida’s western coastline. For this event and others, please do reach out to any of us on the CLM content team to provide your perspective. Whether you participate in a Q&A for our website as the event is unfolding, or write an in-depth article for our magazine, your knowledge is the best resource we have at CLM. Phil Gusman Director of Content phil.gusman@TheCLM.org The Storm That Roared FRONT DESK >>>MAKE BETTER DECISIONS, ACHIEVE BETTER OUTCOMES. We’re here to deliver the outcomes that matter most to keep your business and your people thriving in times of change and growth by providing comprehensive solutions for all your claims and risk management needs. ACHIEVE BETTER OUTCOMES WITH GALLAGHER BASSETT. Learn more at gallagherbassett.com/WMM What matters most to your people, your company, your customers.EXPOSURE HELENE’S DESTRUCTION A look at some of the catastrophic damage brought to Asheville, North Carolina by Hurricane Helene. The most recent CoreLogic insured loss estimate upped expected losses to between $10.5 billion and $17.5 billion. CoreLogic also said total wind and flood damages, both insured and uninsured, will likely be between $30.5 billion and $47.5 billion. PHOTO: MARIO TAMA/GETTY IMAGES 6 CLM MAGAZINE SEPTEMBER / OCTOBER 2024Next >