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Welcome to the Pride,

If used correctly, your claim’s advocate can be worth more than your policy limit.

But almost all companies underutilize them.

In this edition, we will share our lessons learned from recovering over $250 million in claims recoveries for clients through the right advocacy.

We’ll cover:

• Why the right carrier matters more than perfect coverage
• How to avoid a 3-5 year claims nightmare
• The hidden variable in claims advocacy that most brokers ignore
• Actionable steps to bulletproof your claims process

This isn't your typical white paper. This is a no-BS, battle-tested guide to improving your recovery conditions - even if your carrier says they can’t help you.

What is claims advocacy, and why does it matter?

During his second year as a broker, one of our Managing Partners, Mark “Flip” Flippen, had an investment fund client hit with an informal SEC inquiry. It turned into a full investigation and eventual lawsuit.

A few things were eye-opening:

1. It was extremely stressful for his client. The claim consumed the majority of their time and mental energy. The peace of mind from having insurance to defend the suit and pay any settlement was critical.
2. The importance of the coverage working as intended. Luckily, they had a good team and the coverage performed. But it crystallized for him how crucial it is to prepare clients for that moment they have a claim.

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Claims advocacy is the process of supporting and defending your company when someone files a legal claim against it.

Basically:

When plaintiffs file a claim against you, who steps up to the plate to fight for your interests?

If insurance is like a shield that protects you from harm, claims advocacy is the sword that fights on your behalf when trouble strikes.

Everything we do as insurance brokers is to prepare our clients for claims.

If you google “what matters for claims advocacy”, it’ll tell you:

But this misses the most important variable in claims advocacy.

While many financial institutions assume that coverage is the be-all and end-all; however, our decades in the trenches have shown, there's a factor that's even more critical:

Choosing the right carrier.

Is your institution protected when it matters most?

Picture this:

Plaintiff attorneys hit your institution with a claim.

You think you're covered. After all, you negotiated full coverage, so you HAVE to be covered, right?

Well yes, but actually, no.

What most insurance brokers don’t tell their clients is that you can get coverage right a thousand percent of the time.

Finding the right coverage isn’t hard. Finding the right carrier, however, is another story.

If you work with the wrong carrier, if you’re not careful, they’ll try to bleed you out with time.

Here’s the horror scenario we’ve seen a dozen times:

1. Financial institution notifies their broker of claim
2. Broker notifies insurer
3. Insurer takes days to respond, say they’ll “review” the policy
4. After multiple nudges from your broker, the insurer gets back after weeks
5. They overemphasize the importance of minor details in the contract
6. The whole process takes FOREVER

Having the wrong broker makes this even worse. When your carrier is slow to respond, it’s up to your broker to have your back and negotiate hard with the insurer in this scenario.

Battling with a claim is hard. Battling with a claim and insurer simultaneously is hell.

The fallout of a claims dispute can be catastrophic.

You're left dealing not just the claim itself, but an insurer with deep pockets and a team of lawyers trained to wear you down. The financial and emotional strain can be immense.

Again, we learned this firsthand.

In another claim, Flip & Tash handled a complex professional liability matter for an insurance company client. They had potential coverage from their reinsurance tower and commercial market policies, but it was unclear which applied first.

The lack of clarity around which should pay first led to carriers fighting the LION team tooth and nail.

If you have an unfair insurance carrier during a claim, they will make your life hell for 3 to 5 years.

So what can you do about it?

LION’s 4-step blueprint to claims advocacy (from 4 decades of experience)

How much money can you possibly make from changing your claim’s advocate?

Let us answer that question with a story -

The biggest claim Flip ever worked on was a professional liability claim for a bank client.

“We took it over from another broker, who’d convinced them $55M was the best offer they'd get from the panel of carriers.

But we weren't satisfied with that.

Over a couple of months, we leveraged our longstanding carrier relationships to negotiate an additional $500,000 from the lead carrier. That set off a cascading effect, which ended up adding an extra $15M in additional recovery for our client.”

As you can tell, the difference between a good and an exceptional claims advocate is massive.

In this case, an extra $15 million!

See, negotiating claims isn’t about pounding the table -

It’s an art that requires you to pull different levers, most of which require trust built over YEARS in the market.

After nearly three decades in the insurance space, we’ve done this several dozen times.

Here’s our process for ensuring our clients get the right coverage from the right carrier every time:

1. Vet Your Carrier's Claims Handling

Before you sign on the dotted line, you need to know how your carrier behaves when a claim hits.

Here are the main 4 things to look for:

1. Partnership Mentality: Do they have a history of working with clients and brokers during a claim? Or do they go into defensive mode?
2. Initial Response: When a claim comes in, are they open to discussion? Or do they immediately lawyer up with outside counsel, setting the stage for a long, expensive battle?
3. Claim Approach: Do they usually resolve claims efficiently? Or to drag things out and wear you down?
4. Settlement Stance: Do they look for ways to pay claims? Or reasons to deny them?

2. Insist on Crystal-Clear Coverage

With the right carrier secured, the next step is ironing out your coverage. This means:

• Understanding your unique risks inside and out

• Crafting policy language that leaves no room for interpretation

• Aligning all parties on the intent behind every clause

Think of it like constructing a building. You wouldn't wait for a hurricane to find out if your foundation is solid. You'd insist on the best materials and workmanship from day one. Claims readiness works the same way - the groundwork you lay in advance determines how you weather the storm.

3. Understand the Claims Management Process

Here’s a high-level overview of what a claims management process looks like:

We’ve spent decades helping clients navigate over $250M in claims scenarios. Our playbook is built on real-world experience and proven strategies, designed to help you recover faster, more effectively, and with less hassle.

Next Wednesday’s edition will break down our exact 10-step playbook.

(If you got forwarded this email, subscribe to the LION newsletter here to get it in your inbox)

4. Work with an experienced broker that does step 1 and 2 for you

To tell if your broker knows their carriers inside out, ask them 3 questions:

• How will the carrier you’re recommending handle a claim if it comes up?
• How are they handling claims today?
• How will the claims team specifically behave during a claim? (will they hire outside counsel or manage it in house?)

If your broker answers these with a 10/10 confidence level, you’re good.

If not, it’s a huge red flag.

Your broker might be handing you with their B-team. If your institution works with a mega broker and spends less than $7 million on insurance a year, that’s likely the case. We know because we worked for mega brokers ourselves - smaller clients were underserved.

At LION, we've handled hundreds of claims with dozens of carriers. We know exactly how each one operates. When we recommend a carrier, it's based on hard data about their claims track record.

(Learn more about us here)

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We get it - this stuff can be overwhelming.

That's why we're here - to be your guides and advocates. If you're unsure about your current claims readiness, we'd love to chat. We'll review your carrier lineup and policies, and give you our honest take on where you stand. Contact us here​

On Wednesdays, we’ll send you an actionable newsletter like this breaking down 1 fundamental in insurance. It’s our “Financial Institution Insurance Fundamentals” series.

We’d love to hear your feedback on this 1st edition -

Did we succeed in making it an interesting read? Do you want even deeper details? Shorter? Longer?

Stay covered,

Natasha & Mark

Co-Founders and Managing Partners

Lion Specialty