According to recent estimates, total insured losses for Superstorm Sandy will total at least $25 billion. This figure dwarfs the $4.5 billion in estimated losses caused by Hurricane Irene in 2011. Natural disasters often involve a large number of claimants residing in a given geographic area, where the value of an individual claim alone may not warrant the expense of pursuing individual litigation.
Executive SummaryNatural disasters provide fertile for class-action litigation, but carrier can minimize the exposure by taking preventative measures, attorneys from Nelson Levine de Luca & Hamilton advise.
This, combined with the costly nature of natural disaster claims, as well as state requirements relating to insurers’ claims handling practices, create a fertile ground for class action litigation.
Insurers, however, can take steps to minimize class action exposure by employing diligent claims handing processes; ensuring compliance with relevant state requirements; and continually reviewing and revising policy language to reflect lessons learned through litigation.