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SEPTEMBER / OCTOBER 2025 FURTHERING THE HIGHEST STANDARDS OF CLAIMS AND LITIGATION MANAGEMENT The Cognitive Autopilot Problem Time to Get Along Cyber Pirates of the Supply Chain Getting Defense Counsel and Claims Professionals on the Same Page When Defining Successful Resolution What Is a ‘Win’? SEPTEMBER / OCTOBER 2025 DIGITAL EDITION SPONSORED BY:CUSTARD.COM 888.CUSTARD When the unexpected happens, let Custard be your silver lining. Comprehensive Property Claims Handling From minor damage to major loss — we’ve got it covered. Our experienced adjusters deliver fast, accurate service for personal and commercial property claims—helping reduce costs and limit disruptions to your life or business. Contact one of our dedicated team members today for your property claims needs! Richard Mixon Jason Willis VP, Property Services AVP, CAT Operations Manager jwillis@custard.com rmixon@custard.comSEPTEMBER / OCTOBER 2025 FURTHERING THE HIGHEST STANDARDS OF CLAIMS AND LITIGATION MANAGEMENT The Cognitive Autopilot Problem Time to Get Along Cyber Pirates of the Supply Chain Getting Defense Counsel and Claims Professionals on the Same Page When Defining Successful Resolution What Is a ‘Win’?800.580.3228Consultants. Experts. Innovators.rimkus.com YOU HAVE QUESTIONS, WE PROVIDE ANSWERS. WHAT HAPPENED? WITH SO MUCH AT STAKE, YOU NEED TO KNOW Slip, trip, and fall injury accidents are often complicated matters. Using a scientific approach and reliable methodologies, Rimkus specialists in injury biomechanics and human factors work side by side with engineering and building experts to isolate the facts and determine what happened. We have evaluated thousands of such incidents across a broad spectrum of public and private environments. If you're facing a complex forensic challenge of any kind, count on us to uncover the facts.THECLM.ORG/MAGAZINE CLM MAGAZINE 3 CLM MAGAZINE SEPTEMBER / OCTOBER 2025 >>>CONTENTS 16 WHAT IS A WIN? Getting Defense Counsel and Claims Professionals on the Same Page When Defining Successful Resolution 22 THE COGNITIVE AUTOPILOT PROBLEM Why Prepared Witnesses Fail 28 TIME TO GET ALONG Aligning Insured-Insurer Defense Strategies in Professional Liability Claims 34 VOICES Getting to Know: Catherine Deter, Wood Smith Henning & Berman FEATURES 4 FRONT DESK Working Together and Achieving Wins 6 CYBER PIRATES OF THE SUPPLY CHAIN Carmack’s Global Influence, Part III 8 THE EFFECTIVENESS OF EVIDENCE-BASED MEDICINE IN MEDICARE SET-ASIDES Optimizing Care, Reducing Costs, and Protecting Medicare’s Interests 10 FROM SILOS TO SYNERGY The Relationship Broker’s Role in Claims Management 12 BEYOND THE BOTTLE Anticipating the Breadth of Microplastics Liability COLUMNS 16 AROUND THE CLM 34 SEPTEMBER / OCTOBER 2025 DIGITAL EDITION SPONSORED BY: 68 10 124 CLM MAGAZINE SEPTEMBER / OCTOBER 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 SEPTEMBER / OCTOBER • ISSUE 5 • 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 Our theme for this issue of CLM Magazine is strengthening partnerships, and there are a number of articles in this edition highlighting the various relationships throughout the claims process. One critical partnership is between claims departments and outside counsel, and strengthening it is a core part of CLM’s mission: We exist as a forum— at in-person conferences during presentations and networking events, virtually through our online offerings, and here in these pages—to bring our members and fellows together to discuss shared goals, pain points, and trends, with the ultimate aim of finding solutions through cooperation. As part of this mission, CLM formed its Litigation Management Task Force to bring claims and litigation management professionals together to directly address some of the biggest challenges facing this critical relationship and the industry overall. Throughout this year, CLM Magazine has conducted interviews and published articles both in print and online to inform the CLM community about what the Task Force has been up to and the progress it has made on some of the core issues it has tackled, such as billing and the recruitment and retention of talent in the industry. As the Task Force discussions progressed this year, one interesting question was raised that gets to the heart of this issue’s theme: What is a win? It is a simple question with a more complicated answer. A “win” may vary depending on which side of the partnership you’re on, or even from claim to claim, or from company to company. So, if defining a win is a moving target, then how can claims departments and outside counsel work together toward this goal? In the cover feature for this issue, “What Is a Win?” (pg. 16) Tad Eckenrode, Eckenrode-Bauman, explores this topic, from how a win should be defined, to how it should be communicated, to how all sides can work together to achieve it. Eckenrode’s feature not only tackles a critical question at the heart of the relationship between claims departments and outside counsel, but also it provides the CLM community with some insights into the types of conversations happening within the Litigation Management Task Force. Be sure to check out this feature in addition to our other articles on strengthening partnerships, including, “Time to Get Along,” (pg. 28) by Robert Usinger (Intact Insurance) and Alexander Ward (Intact Insurance Financial Institutions); and “From Silos to Synergy,” (pg. 10) by Lovre Brajkovic, Nationwide E&S/Specialty. In addition, take advantage of CLM’s in-person and virtual events. There is no better way to strengthen relationships than to speak with and learn from your peers who represent all parties in the claims and litigation management landscape. Phil Gusman Director of Content phil.gusman@theclm.org Working Together and Achieving Wins FRONT DESK >>>THE ANSWER IS One Company For All Your Consulting Needs GENERAL LIABILITY & CONSTRUCTION FORENSICS WHO HAS PROVIDED THE GL & CD FORENSIC INDUSTRY WITH EXPERT SERVICES SINCE 1989? mcconsultants.com 800.729.0355 356 CLM MAGAZINE SEPTEMBER / OCTOBER 2025 Editor’s Note: This article is the third in a series covering the Carmack Amendment and its role in cross-border freight. The other two articles are “Rethinking Freight in a Changing World,” and “Crossing Borders.” I n this last article focused on Carmack’s global influence, we explore the impact of cybercrime in modern logistics and the increase in cargo theft. The landscape we see today shows an alarming increase in claims involving fraud of over 27%, and more in certain areas near the borders. This article will highlight the emerging tactics that are too often part of a claim’s investigation in today’s adjuster environment. Cargo thieves have adapted using fraudulent pickup schemes. They pose as legitimate carriers—armed with fake documentation and inside knowledge— to fraudulently collect and steal loads. Carriers often have no record of these transactions, making it difficult to prove liability under Carmack—and these types of incidents are typically excluded from standard cargo insurance. Cybercrime amplifies the overall risk exposure. Today, cyber approaches to cargo theft create supply chain disruptions— with hackers deploying ransomware or infiltrating shipment systems and load boards—which are now leveraged to facilitate physical theft. Smaller companies may be at greater risk and may be targeted as easier entrances into the broader supply chains. The Carmack Amendment imposes strict liability for actual damage or loss to cargo during transit, where few exceptions apply. With this new shift in landscape, carriers are exploring new risk strategies: Captive insurance (basically self-insured) to better manage high value or excluded risks like cargo theft and fraud is one. Shipper’s interest coverage is becoming a preferred option where standard cargo policies contain exclusions. Carmack standardizes federal liability; it also preempts many state law claims—including fraud, misrepresentation, and negligence—that shippers could otherwise pursue. We can see this more in the moving industry, as the preemption can significantly limit remedies for consumers. Fraudulent behavior is largely unchecked in this space. Carmack’s Cyber Pirates of the Supply Chain Carmack’s Global Influence, Part III By Valorie Steinbeck TRANSPORTATION >>> Valorie Steinbeck is team manager – inland marine/cargo, Commercial Transportation Unit, at Crawford & Company. valorie.steinbeck@us.crawco.com THECLM.ORG/MAGAZINE CLM MAGAZINE 7 limitations are more exposed as fraud falls outside standard coverages. When looking at the developments, from the perspective of Carmack, strict liability still applies to include fraud and cyber threats. With limited coverage, carriers and shippers are vulnerable to these uninsured losses. Some risk strategies and proactive measures might include the use of captive insurance, enhanced vetting, cybersecurity investments, and focusing on fraud detection. A multi-layered approach to the emerging and daunting theft tactics that continue to evolve can offer better deterrents. Understanding the liability Carmack imposes, and its exclusions, can help a carrier develop a robust fraud verification system and cybersecurity protocols. How can these coverage gaps be addressed? We see parametric insurance models emerging that can offer event- triggered settlements as the cyber disruptions continue. Many platforms are integrating cyber risk coverage for data breaches, business interruption, and liability. Many logistics providers are offering add-on coverage for sea and air transports to minimize delay. Bridging these gaps is a big task, and industry leaders are developing policies that target cyber-enabled theft that can include fraud and deceit extensions that would cover impersonations or fictitious pickups, even when the standard policy might exclude “voluntary parting.” Additionally, there are proprietary cyber-and-crime coverage programs being designed and considered for brokers and carriers to close and narrow the ambiguity that often is associated with sophisticated thefts. Underwriters have increased expectations focused on claims involving fraud and theft of cargo. There is a great demand from the insurers in this area for cyber risk controls like real-time tracking and visibility, verification of loading and delivery procedures, and a strong push for employee training. Having handled several of these claims recently, it is important, now more than ever, that carriers develop a defined training program for cyber awareness. But training by itself is not enough. Properly vetted vendors and partners (third-party) are critical when looking at coverage as well as whether the motor carrier had possession of the load at any time. These and others may soon become prerequisites for renewing coverage in the future. There is a demand from the industry that is both urgent and multifaceted. Momentum has increased for regulatory oversight, accountability, and crime deterrence. Organizations like the National Motor Freight Traffic Association (NMFTA) can provide operational blueprints to stop theft before it happens and can help with resources needed to make internal changes. Insurance is catching up and becoming more conditional, tech aware, and tailored to the modern risks the industry is facing. Key threats to the motor carriers are phishing and social engineering, load board fraud, ransomware and data breaches, fictitious pickup schemes, and GPS/telematics hacking to stage thefts of high-value loads. Motor carrier drivers can take steps to confirm details of the pickup through dispatch before transport; never share route, load, or personal data over text, social media, or unsecured apps; use company approved apps and VPNs for logs and communication; and report suspicious people at pickup locations. Have office staff be just as vigilant by verifying all new brokers and carriers via the Federal Motor Carrier Safety Administration (FMCSA), SaferWatch, or other industry approved tools, call back using independently sourced phone numbers, check banking information using voice confirmation (beware of perpetrators using recorded conversations as voice verification), and flag urgent payment requests. Consider creating a cyber hygiene checklist by setting passwords that are changed every 60 days; multi-factor authentication; no personal USB drives or external devices on company systems; use secure Wi-Fi or mobile hot spots, never public; and lock all laptops, tablets, and ELDs when not in use. Every cybercrime starts with a human click or decision. These are some tactics, not all, that can be considerations that adjusters share with insureds to help their fight against fraud and related crimes. Having knowledge, habits, and tools will directly reduce the risk of cyber- enabled cargo loss. KNext >