Three Key Insights for Brokers from a Management Liability Claim Expert

Understanding the full lifecycle of a management liability claim is essential for brokers who want to better support their clients and navigate complex coverage scenarios. In our most recent webinar Life of a Management Liability Claim, Karli Moore and Nelson Kefauver offered a behind-the-scenes look at how claims are handled—from initial notice to resolution or appeal.

This webinar highlights insights that brokers can use to improve client outcomes, streamline the claims process, and reduce exposure. Below are three key takeaways designed to help brokers stay proactive and informed.

Early and Accurate Reporting Is Critical

Brokers play a vital role in ensuring timely and complete notice of potential claims. Because management liability policies are claims-made and reported, late notice can jeopardize coverage. Brokers should:

• Encourage clients to report potential issues early—even if they seem minor.

• Ensure all required documentation (e.g., EEOC charges, complaints, demand letters) is submitted with the initial notice.

• Understand and communicate policy terms, exclusions, and coverage triggers to clients.

Understanding Resolution Opportunities

The claims process, from EEOC charges to lawsuits and appeals, is lengthy, expensive, and disruptive. Brokers must recognize resolution opportunities exist at multiple stages, including:

• During EEOC conciliation

• After depositions or discovery

• Before trial or during summary judgment motions

Brokers can help guide insureds toward early resolution by supporting objective evaluations and helping clients understand the business case for settling.

Managing Defense Costs

Claims teams work proactively to control litigation expenses through:

• Preferred law firm partnerships with negotiated rates

• Internal billing audits and vendor management

• A philosophy focused on early resolution

Brokers can support this effort by helping insureds understand policy coverage, setting realistic expectations, and facilitating communication between all parties.

Claims can be complex, but with the right knowledge and proactive approach, brokers can make a meaningful impact in guiding clients through the process. Stay informed, communicate clearly, and partner closely with carriers and counsel for smoother resolutions and stronger client relationships.

For more insights or to revisit the full discussion, watch our webinar here.

This article is provided for general informational purposes only and does not constitute and is not intended to take the place of legal or risk management advice. Readers should consult their own legal counsel or other representatives for any such advice. Intact hereby disclaims any and all liability arising out of the information contained herein.

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