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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.

What CE Credit is available?

Note: To qualify for credit, you must submit completion (including a passed final exam if required) within five days of completing the last quiz. No partial credits will be awarded.

Adjuster General CE Hours:
Adjuster Ethics CE Hours:
Attorney General CLE Hours:
State's Course ID:
NH 2.0 485166
TX (classroom equivalent) 2.0 120858
NC 2.0 210916
FL * ( Provider Number: 364169 ) 2 - Adjuster Optional 1182367
IL 2.0 473547
WY 2.0 30527
OK 2.0 6000052247

* This course has been approved by the Florida Department of Financial Services for insurance continuing education credit.

Course Content

Lesson Content

1) Introduction and goals of the presentation
2) What is a negligent security claim?
3) The types of premises and activities involved in these claims
4) The most important witness and areas of investigation
5) Elements of a negligent security claim
6) Historical development of negligent security claims
7) Legal analyses of the three elements
8) Recap

Lesson Content

1) Overview and factual background of the claim study
2) Key investigative steps
3) Reviewing the lawsuit and gathering more facts
4) Underwriting issues to consider
5) Impact of possible policy exclusions
6) Recap

Lesson Content

1) Common liability allegations by plaintiffs
2) What legal duty is owed?
3) Understanding the foreseeability question
4) Evidence used to evaluate foreseeability questions
5) Available defenses
6) Impact of the status of the claimant on the legal standard

7) Recap

Lesson Content

1) Strategies for analyzing a new negligent security claim

2) Hiring experts
3) Obtaining data, surveillance videos and photographs
4) Obtaining information about the incident, witnesses and
security documentation
5) Evaluating coverage
6) Impact of the conviction or acquittal of the assailant
on coverage
7) New claim analysis wrap-up
8) Handling potential conflicts of interest
9) Recap

Lesson Content

1) Pre-trial tactics
a) Perform a thorough investigation
b) Prevent the defense from interviewing the
c) Hire a team of experts and delay their
d) Challenge the defense’s experts
e) Immediately notice the case for trial
2) Preview of mediation tactics
3) Trial and other tactics
4) Recap

Lesson Content

1) Preparing for mediation
2) The mediation process summarized
3) Claim study wrap-up
4) Claim study comparison
5) Closing remarks
6) Recap

Submit within 5 days to get CE Credit or Certificate of Completion.