As risk management professionals, we often spend large portions (if not all) of our day arguing or debating with opposing parties and attorneys. Sometimes those debates or arguments extend to our own outside counsel, clients or other interested parties or individuals. In a climate where we are so often focused on “winning the fight,” we sometimes lose sight of the fact that in-house counsel, outside counsel, risk management and other insurance representatives are on the same team in most instances, and usually have the same goal or outcome in common: minimizing costs and closing a claim efficiently and effectively.

The following concepts and ideas are basic steps that can be taken to help create a cohesive unit among the various stakeholders in the risk management industry.

Maintain a team approach among in-house counsel, broker and insurer.

We do not commonly think of the parties to a lawsuit or a claim to be a team in the traditional sense of the word. However, taking into consideration basic concepts of teamwork—such as communication and collaboration—can lead to better outcomes in claims handling.

The common acronym of Together Everyone Achieves More certainly can apply in a litigation and risk management setting. While each stakeholder or participant in the risk management process may have their own interest at heart, everyone involved (aside from the opposing party) is best served by reaching a quick and cost-effective resolution, whether that means settling presuit or pretrial or litigating the case. By focusing on the big picture, rather than one's individual interest, all parties can work together to achieve a positive result. Getting to know each party's goals, motivations and strategy will help to tailor messaging to that person or party. For example, if the in-house counsel of an insured is trying to close claim files by the end of the fiscal year and is substantially under budget for the year, outside counsel may understand that the cost of closing a claim may not be as important to them as the fact that it is closed and closed by the end of the fiscal year.

Paying attention to your legal team members and listening to their individual needs, regardless of whether those needs interfere with yours, is crucial to developing a trusting relationship and achieving a positive outcome.

Understand the business model.

As an outside attorney, it is important for me to understand my client's business model and operations. It makes me a better attorney if I understand what a party or witness is describing in a deposition. There is no need to ask a dozen questions about what a certain item or device is when you already know what they are talking about. In-house counsel can help achieve this goal by welcoming the team to the workplace to see and understanding day-to-day operations. This concept, however, should not just apply to attorneys. Adjusters will be better adjusters if they understand their clients better, agents will better understand risks when trying to get their clients the best insurance product and even risk managers will benefit from having an outside set of eyes, whose interests are often aligned, see things from a different perspective, which might lead to a reduction in injuries or claims.

Train properly for the future.

While it might seem counterintuitive for someone who defends claims for a living and thus relies in part on accidents happening, outside advisers should work to help companies prevent accidents and better understand risks and how to deal with them when they happen. This will help to foster a more productive relationship between in-house and outside counsel, which ultimately leads to better outcomes down the road.

Basic training on what to do following an accident or incident will help the company be better prepared for a potential lawsuit or claim, and it will also help the insurer obtain the necessary information quickly and efficiently to assess their liability. Additionally, it will help counsel to defend the claim if and when litigation commences. Training is also a great opportunity to spend more one on one time together to discuss concerns and needs, which further elevates the entire team.

Work with brokers and insurers on safety plan/strategy for insureds.

Oftentimes insurance companies provide risk management services to their insureds. Insureds should take advantage of this opportunity, which is frequently included in the insurance package. Brokers can and should seek these types of services when shopping insurance for their clients. It behooves both the insurance company and the insured to try to minimize risks, and is one area where both the insureds and insurer's interests are most clearly aligned.

Engage brokers or agents for communication between insurers and insureds.

Litigation and risk management can be a stressful (and always adversarial) field. It is not uncommon for one party to be so passionate about their position that they lose sight of another party's thoughts or interests. Agents or brokers can sometimes act as a mediator or go-between to help solve problems and bridge gaps between parties' respective positions. However, it is crucial that the team understands the importance of discretion when communication involves outside counsel as well as inside counsel (i.e., a client), an agent or a broker, as the presence of a third-party could result in piercing of the attorney-client privilege.

Conclusion

While there is no magic bullet to make risk management or claims handling simple or easy, taking these easy steps can certainly help to take some of the stress out of the process. While each person or party has their own interests and assets to protect, working together to help each other before, during and after an accident or occurrence will result in a better outcome for all involved.

Jeff K. Stinson is an attorney with Swift, Currie, McGhee & Hiers, LLP in Atlanta, where he represents employers and insurers in workers' compensation claims.