Handling the Multi-Million Dollar Negligent Security Claim

This course “Handling the Multi-Million Dollar Negligent Security Claim” is designed to enhance an adjuster’s knowledge and understanding of coverage, adjustment and legal issues involved in high exposure negligence security claims. The module is presented by Frank Donahue, Executive V.P. of Claims at Seneca Insurance Company, and experienced attorney W. Lane Neilson of Neilson and Associates, PA.

This course begins by defining what a negligent security claim is and describing the type of premises and activities that are frequently involved in these claims. The presenter then discusses the historical development and legal analyses of these claims, including the three elements required to establish a negligent security claim. In the next section, the presenter reviews a negligent security claim study involving a shooting at a bar and outlines how insurers can investigate these claims and identify policy and underwriting issues. Next, the presenter reviews the theories of liability frequently asserted by plaintiffs and the available defenses. The fourth section focuses on analyzing a negligent security claim, developing the insured’s defenses and handling potential conflicts of interests. In the final two sections, the presenters discuss tactics commonly used by experienced plaintiff’s counsel before and during trial, as well as during mediation, and provide strategies for dealing with those tactics. Finally, the presenters review how the claim study was resolved and compares those results to results of a similar claim where the insured had different policy provisions.

After completing the course, the viewer should be able to…

explain what a negligent security claim is and the different premises and situations involved; outline the three elements of a negligent security claim and identify some of the common legal issues presented by these claims such as questions about foreseeability; develop a plan for investigating these types of claims including what documentation to obtain, witnesses to interview and experts to retain; identify potential coverage and underwriting issues related to these claims; specify some of the common allegations raised by plaintiffs in negligent security claims and the available defenses; describe the pre-trial and trial tactics used by experienced plaintiff’s counsel in these types of claims and strategies for dealing with those tactics; advance the insured’s best arguments during mediation; and, evaluate a potential conflict of interest and determine the best course of action.

The course is designed for insurance professionals working in the area of liability insurance adjustment.