How a TPA Helps Manage Liability Claims in a Challenging Legal Environment
Bigger jury awards and increased litigation are putting a spotlight on the value of specialized claim management services. Risk professionals know that even a single liability claim can lead to a lawsuit that could result in a multimillion-dollar loss. Working with a results-oriented third-party administrator (TPA) gives you access to specialized claims expertise that can help protect your business in an increasingly litigious environment.
In addition to the financial cost of responding to a lawsuit, there's the time involved in preparing for litigation, as well as the potential for damage to your company's brand and reputation throughout a protracted legal journey. Developing a comprehensive claims management program with a TPA that aligns with your business goals and establishes an intelligent and consistent approach to claim handling and resolution can help contain litigation risks.
Here are some ways the best TPAs can help your company make the right moves to limit your liability exposure.
Collaborate with Your TPA to Help Manage Liability Claims
After a claim, timely intervention is critical. A well-established, carrier-owned TPA can help protect your company from the First Notice of Loss. Claim professionals who have access to advanced analytics and third-party data provide actionable insights to help reduce your exposure. For example, Constitution State Services is backed by the deep expertise, potent data engine, and financial strength of Travelers to help businesses handle even the most complex claims.
Claim Professionals Who Know Your Business
The most effective TPAs know your business, your philosophy and your approach. Constitution State Services helps educate claimants about the process, works hard to ease their stress, and resolve their issues, which helps reduce the need for litigation. Constitution State Services Claim professionals use industry-leading risk analytics tools and technology, which they incorporate in the claims process to help ensure the best outcomes for your business.
From the First Notice of Loss, throughout the life cycle of the claim, Constitution State Services works to understand a claim from every angle. For example, we use an automated social listening platform to gather publicly available data that may prove important to the resolution of a claim. This can help either corroborate the facts of a claim or identify potentially conflicting information.
Incorporate Sophisticated Modeling to Predict Legal Actions
Data models require access to high-quality data resources, as well as a team of talented data scientists to analyze and derive actionable insights that can help improve business outcomes. Strengthened by a rich database of claims data, Constitution State Services has predictive models to help understand the likely direction a claim will take. The intelligence they gain enables Constitution State Services to align the right resources in a timely manner, with the right strategies to intervene.
CSS's Attorney Propensity Predictive Model helps identify unrepresented claimants that may have a high likelihood of going to an attorney. Identifying claimants early who are not represented by an attorney but are likely to get an attorney, helps Claim professionals understand how best to work with these claimants to avoid litigation.
Use Attorney Analytics to Inform Claim Strategies
If a claim does involve legal action, knowing the legal team involved and how they operate can help when preparing an effective response. Constitution State Services uses an Attorney Analytics tool that provides insights on attorney firm behaviors, helping to inform our strategic response. The model collects data about more than 50,000 law firms and more than 200,000 attorneys to study trends.
Knowing whether an attorney is more likely to settle or bring a claim to trial can help develop the claim strategy. CSS's attorney analytics tool evaluates regional attorneys' strategies and local loss trends to help identify claims that would benefit from an accelerated resolution plan.
By identifying losses that require more expertise to properly assess risk exposure, Constitution State Services can bring in additional resources and develop an optimal resolution strategy to reduce unnecessary claim costs and bring claims to a timely resolution.
Deliver a Powerful Response to Claims
Having a robust response to a claim can help reduce the likelihood of litigation. Sixtyone percent of general liability claims against our insureds are denied based on a determination of no legal liability or are voluntarily withdrawn.1 Nine out of 10 general liability claims are resolved without advancing to a lawsuit.2 If a claim does come to litigation, Constitution State Services works with defense counsel to protect your business interests.
Taking the Next Step with a TPA
Constitution State Services' experienced team of Claim professionals and litigation, subrogation, risk control and medical claims specialists are trained on an ongoing basis. Working together, they can help achieve the best possible resolution. Contact CSS to learn more about how they can help your company manage claims.
Experienced Claim Professionals
Our people are our point of difference. They're experienced, insightful and proactive, and integrate seamlessly with your organization.