Claims Handling Best Practices For Major Class Action And Mass Tort Litigation

Large-scale class actions and mass torts pose unique and significant challenges for insurers, far exceeding the complexity of most individual or smaller-scale litigation. These cases often span multiple jurisdictions, requiring coordination across different courts, and may involve a variety of overlapping insurance policies and lines of coverage. The stakes are high: the potential exposure can be enormous, sometimes threatening the financial stability or even the existence of the insured. If not managed properly, class actions and mass torts can create risk of bad faith liability for the insurer that far exceeds policy limits.

The complexity of class actions and mass torts arises not only from the number of claimants but also from the procedural hurdles, the need for sophisticated legal strategies, and the potential for conflicting interests among multiple insureds or carriers. Insurers must navigate evolving legal standards, manage large volumes of information, and respond to