A litigation hold protects documents, electronically stored information and other relevant information for a future legal action. (Photo: Thinkstock)

The phrase “spoliation of evidence” invokes thoughts of discarded pipes and compromised fire scenes. Even the greenest of first party adjusters and subrogation professionals are quick to ask an insured if the physical artifacts related to a loss are still available. Given that most documents and communications are now transmitted and stored electronically, the potential for spoliation of evidence exists not only with physical artifacts, but also with the preservation of documents and electronically stored information (“ESI”). In order to prevent a claim or defense alleging the spoliation of evidence, adjusters and subrogation professionals should be implementing litigation holds for all claims where subrogation is pursued.

What is a litigation hold?

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