STRATEGIC CLAIM ADVICE + DISPUTE RESOLUTION
Clients seek our advice on insurance issues outside of coverage litigation. We provide strategic input on large loss claim preparation, manage communications with insurers for high-stakes litigation, and assist with settlement discussions when insurers take aggressive positions on coverage issues.
◆ A Fortune 500 retailer engaged us to maximize the insurance recovery for a multistate MDL class action under its own CGL and cyber policies (with more than $1billion in limits) and as an additional insured under its vendors’ CGL policies.
◆ We provide ongoing guidance to an international retailer regarding insurance and claims management issues in connection with litigation the client manages under its large self-insured retentions (SIRs). We also counsel the client on its rights under indemnity agreements and as an additional insured. Many of these matters are opened and closed in a short period of time and for relatively small fee amounts.
◆ We advise a billion-dollar energy producer on various insurance matters, including strategic advice regarding insurance and indemnity issues that arise under vendor and supplier contracts, claim assistance and advice regarding a property damage loss in excess of $20 million, and comprehensive analysis of its D&O policy.
INSURANCE COVERAGE LITIGATION
We handle large-scale, complex coverage disputes in courts across the country.
◆ A global technology company engaged us to handle litigation in New York against its CGL and E&O insurers, seeking to recover more than $90 million incurred by the client defending and settling bet-the-company antitrust litigation. After the court granted summary judgment in favor of our client, the case settled favorably.
◆ When a catastrophic hurricane forced an aerospace manufacturer to suspend operations due to flooding, we were hired to handle litigation in North Carolina against the commercial property insurers that refused to pay the client’s $33 million business interruption claim. To create an opportunity for early settlement negotiations before litigation expenses soared, we proposed an initial slate of 30 depositions followed by mediation. The case settled before the client incurred the extraordinary costs associated with hundreds of depositions and production of more than a terabyte of data.
◆ A national security company engaged us to negotiate the settlement of a class-action MDL alleging violations of the Telephone Consumer Protection Act and seeking $40 billion in damages arising from nearly 30 million allegedly unlawful calls. When the CGL and cyber insurers refused to engage in settlement negotiations to resolve the MDL, we sued them in Texas for failing to settle the case, while managing parallel litigation initiated by insurers in West Virginia. We ultimately negotiated separate settlements with each of the four insurers, including intricate indemnity provisions to address cross claims between them.
◆ When first-layer excess insurers in a $100 million insurance program delayed acceptance of coverage for a nationwide asbestos docket, a publicly traded heating and cooling company retained us to handle large-scale coverage litigation in the Midwest, while working simultaneously to negotiate a cost-sharing agreement with the excess layers.
INSURANCE PROGRAM REVIEW + ANALYSIS
Clients hire us to help them understand their insurance policies and evaluate the effectiveness of their risk transfer tools — insurance policies, indemnity agreements, and contractual insurance requirements. Tailoring our services to clients’ particular needs, we handle single policy reviews (often cyber or D&O) and analyze entire insurance programs, typically during the renewal process or in connection with vendor or supplier contracts.
◆ An airline client engaged us to analyze 30 risk scenarios against its cyber policies, testing the coverage for each scenario, spotting gaps and limitations on coverage, and making recommendations for consideration by the client and its insurance broker.
◆ A quasi-governmental entity with annual revenue in excess of $1 billion engaged us to review all aspects of its insurance program, including cyber, D&O liability, CGL, commercial property, commercial automobile, and workers compensation. In conjunction with evaluating the client’s policies, we also reviewed the insurance and indemnity requirements in several vendor contracts. The analysis included risk roundtables with subject-matter experts in engineering, IT, marketing, and operations to identify risks the client sought to transfer to its insurers or vendors. We then worked with the client’s brokers, consultants, management, and legal and risk departments to address concerns and make recommendations.