Insurance Coverage Consulting for Long-Tail Liabilities
Defending and resolving long-tail liabilities and other emerging toxic torts has burdened many corporate policyholders with significant costs. When companies rely on their historical general liability insurance to offset these costs, insurers often dispute these claims on a variety of grounds, including the applicability of coverage, the method by which liabilities are allocated to the coverage, and the validity of the costs incurred or forecasted.
By leveraging Navigant’s clear, objective, and analytical approach, our policyholder clients can be sure that they receive the critical information, analyses, and guidance to determine the appropriate strategy to achieve a favorable recovery. We have credible relationships and experience resolving a variety of claims related to major long-tail liabilities with U.S. domestic, London Market and other global insurers.
To date, our consultants have successfully recovered more than $3 billion on behalf of more than 100 clients. We employ state-of-the-art technology and proven processes to analyze liability allocations efficiently using multiple insurance allocation theories. Our services include:
- Valuing future long-tail claims and exposures
- Conducting claim file audits
- Preparing and presenting claims
- Assembling and organizing insurance policies
- Modeling insurance policy allocations
- Supporting settlement negotiations
- Supporting recovery in solvent schemes of arrangement
- Providing expert witness testimony
Recovering Value from Historical Insurance
Navigant was retained by coverage counsel for a company involved in litigation against dozens of its historical insurers regarding general liability coverage for asbestos claims. Our professionals modeled a number of different allocation theories related to known past and estimated future liabilities. The combination of these parameters led to more than one-hundred different allocation scenarios which tested the sensitivity of variables, such as: allocation methodology (pro rata vs. weighted); coverage trigger; scope of future liabilities; defense cost treatment; number of occurrence; and other factors. The analysis served a dual purpose by helping counsel define an optimal litigation strategy and facilitating settlement negotiations. Our professionals prepared insurer specific settlement packages noted for the clarity and transparency regarding the value associated with each insurance policy.
Navigant actively participated with coverage counsel in many of the settlement negotiations, ultimately, realizing more than $400M in successful settlements with client’s insurers.