Search
 
Commentary

A song and dance: Why a claims department is no Broadway show

Insurers are in the business of risk transfer, so they should know better than most the risk involved with attorneys performing the same business function as that of a typical insurance adjuster.

By Max J. Louik, Elizabeth L. Taylor and Katie Rose Kenawell | November 10, 2023 at 01:18 AM
Because litigation is part and parcel of an insurer’s business, insurers are arguably incentivized to structure their internal operations in a manner that limits the likelihood of policyholder success in litigation. One way that some insurers have attempted to do so is to staff their claims departments with attorneys. Credit: freshidea/Adobe Stock Because litigation is part and parcel of an insurer’s business, insurers are arguably incentivized to structure their internal operations in a manner that limits the likelihood of policyholder success in litigation. One way that some insurers have attempted to do so is to staff their claims departments with attorneys. Credit: freshidea/Adobe Stock

For the vast majority of policyholders, insurance coverage litigation is a rare event. With limited exception, commercial policyholders are not in the business of insurance, and as such, their internal policies and procedures are not developed with insurance litigation in mind.

For insurers, however, insurance coverage litigation is routine. When insurance coverage litigation reaches the discovery phase, the disparate nature of the parties’ businesses (insured v. insurer) can make all the difference.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

Recommended Stories

Complex Claims & Litigation Forum 2024Event

The conference experience aimed to help insurers and litigators Prevent, Prepare, and Prevail in complex claims cases and risks.

Get More Information
 

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.