Reactive strategies are defensive strategies that are designed to respond to an unanticipated event after it occurs. We are versed in such strategies. That said, there is a certain inefficiency to reactive strategies.
One of our clients (we count it as a success) came to us because the traditional way wasn’t working. This was a company with good equipment and good employees. This company employed the traditional approach. They would have an injury or claim, report it to their underwriters, who would then in turn appoint defense counsel. Because of the claims frequency, the costs associated with this approach, both defense costs and paid out over deductible claims and judgments, had adversely impacted this company’s loss record to the point where it was threatened.
With this client, we employed a proactive approach.
In warfare, proactive strategies are designed to establish positions of relative advantage which in turn create conditions for favorable conflict resolution. For us, this involves assessing the risks (some threats are truly unique, but most are not) and then developing strategies for the owner/operator, or business to mitigate the risk. Companies with economies of scale do this daily with their in-house counsel. Our goal is to allow smaller companies have access to the same approach as needed.
For the client mentioned above, we got close to his business. We analyzed where his claims were coming from generally and through contract review, analysis and negotiation, crafting of internal policies, and deployment of procedures designed to aid in the defense of future litigation, were able to help dramatically reduce the claims frequency and as to the remaining claims, position ourselves for favorable outcomes. It worked. This company went from an average of five claims per year to one on average and, as to those where we were appointed to defend him, the outcomes were favorable.
We call this being outside general counsel. Both the companies and their insurers and underwriters we represent benefit from this approach. It’s a flash to bang approach. We are ever mindful that this must be done in a way that works in a commercial sense. Our goal is to work with the company and we can tailor a program to assist regardless of your company’s size and needs.