Investigation, Evaluation, Negotiation, and Settlement
Investigate in the right order
Resolve coverage first, then liability, then damages - a perfect liability investigation is wasted if the loss falls outside the policy. Establish the loss date, location, and cause; inspect the scene; photograph and diagram; obtain fire, police, and weather reports; interview witnesses; take recorded or sworn statements (an examination under oath where the policy and facts warrant it); and retain independent experts for origin and cause, engineering, or forensic accounting. For injury claims, secure medical records and authorizations, review pre-existing conditions, and schedule independent medical examinations where appropriate.
Evaluate and negotiate
Build damages from documented specials plus defensible general damages, discounting future losses to present value, and credit liens - Medicare, Medicaid, ERISA plans, workers' compensation (New York workers' compensation is the exclusive remedy against the employer, subject to the lien). Set reserves realistically and revise them with documented reasoning. In negotiation, know your authority, your best alternative, and the realistic jury range; make offers in decreasing increments, trade concessions for releases, and confirm Medicare Set-Aside or conditional payment resolution before closing. New York's pure comparative fault shapes the opening range, and General Obligations Law contribution-credit rules matter when co-defendants settle.
Traps: paying before a coverage determination; settling without clearing a lien; releasing one party and unintentionally discharging another; failing to notify an excess carrier; and offering an amount a reasonable person would not believe is owed.
Rule of thumb: write the settlement memo as if a jury will read it - coverage, liability percentage, specials, general damages, liens, and net to claimant.