In parts one and two of our auditing series, we focused on workers' compensation and property losses, respectively. For the third installation, we will cover another animal entirely: liability claims.

Of the many types of liability claims—professional, construction defect, directors' and officers' (D&O) and many others—we will examine the two most frequent: auto liability claims and general liability claims. We'll also focus on third-party auto claims rather than first-party, such as collision, comprehensive, and medical payments claims. 

Liability claims, especially when pertaining to automotive, may exhibit "split personalities." Therefore, adjusters must handle them very differently when compared to the workers' compensation and property claims we previously discussed. Keep in mind that:  

• Property damage claims that a less experienced adjuster should handle in a "fast track" process that should involve a minimum of fuss for the claimant, and,
• Bodily injury (BI) claims, which sometimes involve serious injuries or death.  Some of these claims may be open for many months or even years, requiring the service of a more experienced adjuster to manage the significant case reserves and payments.

The real issues arise in the event of an accident, such as a motor vehicle collision that causes both property damage and BI claims, meaning the claims administrator must manage one or several features. Does one adjuster typically handle the entire claim, or are the various features assigned to different adjusters? Clearly there is not just one right answer to this question. Rather, the carrier must coordinate the adjusting responsibilities so that both property damage and BI features for one claimant are managed cohesively to ensure an optimal outcome.