The Problems With Harvey: Litigation Lessons

In the days after a catastrophic loss like Hurricane Harvey, challenges abound for insurers. Due to the extensive damage often caused by a disaster, insureds are justifiably distraught. Claims volume is overwhelming and almost certainly exceeds the ability of an insurer’s existing roster of field claims professionals to handle, which can lead to a reliance on third-party providers that might not be completely familiar with a company’s claims handling processes. Experts and engineers can be in short supply, and they can be undermined by well-intentioned claims professionals. Finally, there is the likelihood of impending litigation. Fortunately, history provides some lessons from which to learn.