In the recent In-House Connect webinar “Insurance Claim Fundamentals for In-House Counsel,” experts Hanoch Sceps and Josh Weisberg shared essential insights on managing insurance coverage disputes effectively. Moderated by Shai Mehani, the session provided practical advice tailored to the unique needs of in-house counsels, highlighting best practices for navigating the complex world of insurance claims.
Here are the top five takeaways from the webinar:
Timely Notice to Insurers: Providing timely notice to insurance companies is paramount for maintaining coverage. Delay might only impact coverage if it prejudices the insurer’s ability to investigate the loss. The decision to submit a claim should be judicious, especially if the dollar value is significant or if there are potential disputes over coverage.
Importance of Open Communication: Maintaining a transparent dialogue with insurers is vital. Withholding information can complicate the claims process and hinder approval. Insurers are businesses, not charities, and policyholders must understand and meticulously scrutinize their policies to ensure all necessary information is shared upfront.
Role of Brokers and Advisors: Brokers play an integral role in advising policyholders and navigating claim submissions. Not every claim needs to be directly submitted to insurers without consulting brokers. It is crucial to address claims early on to avoid accumulating numerous small claims, which can affect future premiums and coverage.
Understanding Bad Faith Claims: Recognizing what constitutes bad faith in insurance claims is essential. Bad faith involves insurers being non-responsive, arbitrary, or making unjustified payments. This varies significantly by state law, and in-house counsels must comprehend these variations to manage claims effectively. Knowing state-specific regulations is crucial in litigation cases.
Building Relationships and Proactive Management: Establishing strong relationships with brokers and insurance attorneys is key to efficient claim processing. Following best practices in documentation and oversight increases the likelihood of claim payouts. Engaging in proactive communications with brokers, especially three months prior to policy renewals, helps avoid surprises and ensures adequate coverage.
The webinar underscored the complexities of managing insurance claims and coverage disputes. By ensuring timely notice, maintaining open communication, leveraging brokers’ expertise, understanding bad faith claims, and building strong professional relationships, in-house counsel can effectively mitigate risks and safeguard their organizations.
Missed it? You can watch the recording via IHC On-Demand!
