Two decisions of Australia’s highest court have clarified and reshaped the legal framework governing institutional liability for historical harm claims. Together, these developments materially alter how liability may arise for organisations entrusted with the care, supervision or authority over children and other vulnerable people, with important implications for insurers and claims professionals managing latent and special risk exposures.

Redefining the boundaries of vicarious liability

In a recent ruling, Bird v DP (a pseudonym) [2024] HCA 4, the High Court confirmed that vicarious liability under Australian common law remains confined to genuine employer–employee relationships. The Court made clear that liability cannot be attributed to an organisation for serious wrongdoing carried out by an individual where no such employment relationship exists.

This clarification narrowed the scope for claimants to rely on vicarious liability in historical matters involving individuals engaged in non‑employment roles, such as volunteers, clergy or contractors. As a result, the nature of the legal relationship between an organisation and the individual concerned has become a critical threshold issue when assessing whether vicarious liability can be established.

Expansion of direct institutional responsibility

The liability landscape shifted again in a subsequent decision, AA v The trustees of the Roman Catholic Church for the Diocese of Maitland-Newcastle [2026]  HCA 2), which examined whether an organisation could be directly responsible for harm arising from the conduct of a delegate, even where vicarious liability could not be established.

The Court confirmed that organisations entrusted with the care, supervision or authority over children may owe a non‑delegable duty of care. Importantly, the Court held that this duty may be breached by serious misconduct carried out by a delegate, provided the harm was foreseeable and arose from the exercise of authority or functions conferred by the organisation.

In clarifying the scope of this duty, the Court identified key considerations, including whether:

• the organisation assumed responsibility for the safety and wellbeing of the child;
• the risk of harm was reasonably foreseeable; and
• the harm arose from authority or responsibility delegated by the organisation.

This marked a significant development in Australian law by expanding direct institutional responsibility beyond traditional negligence concepts and allowing liability to arise independently of employment status.

Implications for risk and claims management

Taken together, these developments draw a clearer distinction between vicarious liability, which remains anchored to employment relationships, and direct institutional responsibility, which may arise through non‑delegable duties of care.

For insurers, claims professionals and organisations managing historical and latent risk exposures, this shift materially alters the risk profile. Claims may increasingly turn on whether an organisation assumed responsibility for care, supervision or authority, rather than on formal employment arrangements alone. This has direct implications for underwriting approaches, policy interpretation, reserving practices and the long‑term management of latent and special risk portfolios.

Key takeaways for insurers:

• Employment status is no longer the sole driver of exposure
  While vicarious liability remains limited to employer–employee relationships, liability may still arise through direct duties of care, even where individuals involved were not employees.
• Expanded exposure arising from assumed responsibility
  Organisations that assume responsibility for the care, supervision or authority over vulnerable persons may face direct liability for serious misconduct carried out by delegates, volunteers or other non‑employees.
• Increased focus on institutional role rather than individual actions
  Claims assessment is increasingly centred on whether responsibility for safety and oversight was assumed, rather than on the specific conduct or status of individuals alone.
• Heightened sensitivity for long‑tail and legacy claims
  The expansion of direct institutional liability has implications for historical exposure, particularly for insureds with long‑standing reliance on delegated authority structures, contractors or volunteers.
• Greater scrutiny of policy wordings and risk assumptions
  These developments reinforce the need for careful consideration of coverage triggers, aggregation, reserving assumptions and long‑term risk modelling across latent and special risk portfolios.

Our expertise

In this evolving legal environment, navigating historical abuse, latent injury and other special risk claims requires deep technical knowledge, sensitivity and strategic claims management. Our specialist teams bring extensive experience in managing complex institutional liability matters across multiple jurisdictions. Drawing on a multidisciplinary approach that combines legal insight, forensic investigation, policy interpretation and stakeholder management, we support insurers and organisations in responding to these claims with rigour and care. As the legal framework continues to develop, our experts are well-positioned to help clients assess exposure, manage emerging risks and deliver consistent, defensible outcomes in this highly specialised and evolving area of claims management.

Latent and special risk liability brochure

Every event is different, but the impact on people is always the same. A home gone in minutes. A business shut down indefinitely. Families standing on what used to be their property, trying to understand what comes next. Wildfires, in particular, are uniquely devastating because they do not just damage structures. They erase lives as people knew them.

That is why preparation matters so much, especially now.

What the Recent California Wildfires Reinforced

The wildfires we have seen in California, including the Los Angeles and Palisades areas, reinforced hard truths the industry cannot afford to ignore. These were not small events, but even when claim counts appear manageable on paper, wildfire losses require highly specialized expertise to handle properly.

Wildfire claims are not wind or hail claims. They involve total losses, complex rebuilds, strict building codes, environmental considerations, debris removal, smoke and soot remediation, and most importantly, deep empathy for people who have lost everything.

What concerned me most was not just the scale of destruction. It was how exposed many homeowners, businesses, and even insurers were due to lack of preparation and lack of experienced resources.

A Shrinking Pool of Specialized Adjusters

Over the past two years, the industry has seen fewer large catastrophe events overall. That may sound like good news, but it has created a serious downstream problem.

Many experienced catastrophe adjusters, particularly those with wildfire expertise, have left the industry altogether. When work slowed, people could not afford to wait around. They changed careers. They moved into other roles. And now, as wildfire activity ramps back up, those skill sets are no longer readily available.

Wildfire adjusters are a different breed. They understand how to rebuild a home from the ground up. They know how local and state codes apply. They can assess whether a structure can be saved or must be demolished. They can walk a homeowner through debris removal, environmental testing, and reconstruction without making promises that will not hold up later.

That experience is becoming rare. When events happen, supply and demand takes over quickly. If you are not prepared, you are likely to be at the back of the line, paying more and waiting longer for the right help.

Why Preparation Before Fire Season Is Critical

Preparation is not about predicting the next wildfire. It is about having a plan you can activate immediately.

In the first seven days after a catastrophe, the difference between prepared and unprepared organizations becomes painfully clear. Those with plans in place already have people positioned, housing options identified, and response strategies underway. Those without plans are scrambling, often with fewer choices and higher costs.

There is no downside to being prepared. As insurance and risk professionals, that is what we are supposed to do. We anticipate worst case scenarios and reduce their impact.

What Homeowners and Business Owners Should Do Now

If you live or operate in a wildfire prone area, preparation starts well before smoke is in the air.

Understand your insurance policy.

Many people do not fully understand their coverage until it is too late. Law and ordinance coverage is a common gap. Rebuilding to current code can add hundreds of thousands of dollars to a loss. If your policy limits do not account for that, you may be left with painful decisions after a fire.

Know what you are exposed to.

Think about your property, your surroundings, and your vulnerabilities. Vegetation management, defensible space, and construction materials all matter. These are conversations worth having before fire season, not during it.

Plan for displacement.

Wildfires do not just damage buildings; they displace people. Temporary housing is one of the biggest challenges after a major event. Having access to a coordinated housing solution can make an enormous difference in how quickly families and employees regain stability.

Expect the process to take time.

Rebuilding after a wildfire is rarely quick. Permitting, inspections, environmental reviews, and contractor availability all factor in. Knowing that upfront helps set realistic expectations and reduces frustration.

The Role of a Trusted Partner

One of the biggest lessons I have learned over the years is that catastrophe response is not something you can figure out as you go. Every event is dynamic. Conditions change daily. Access issues, secondary hazards, and infrastructure damage can all complicate recovery.

Working with a partner like Sedgwick allows insurers, businesses, and policyholders to bring everything together. Claims management, temporary housing, emergency repairs, environmental expertise, engineering support, and content solutions can all be coordinated through a single, integrated approach.

That coordination matters. When the right experts are involved early, we can often save structures that might otherwise be written off, control costs responsibly, and most importantly, treat people with the care and respect they deserve during one of the worst moments of their lives.

A Final Thought

Catastrophes are called catastrophes for a reason. No one expects them. But the consequences of not preparing are entirely predictable.

I have walked into wildfire zones, hurricane paths, floodplains, and tornado scars across this country. I have never seen a situation where preparation made things worse. I have seen countless situations where the lack of it made everything harder.

Wildfire season is coming. The time to plan, while experienced resources are still available, is now.

Take the Next Step in Your Wildfire Preparation

Preparation does not have to be overwhelming. Having a clear, practical checklist can help you take the right steps before wildfire season begins, whether you are protecting a home, a business, or both.

To help you get started, we have created a Wildfire Preparation Checklist for homeowners and business owners. It outlines key actions to take before, during, and after a wildfire, including preparation planning, insurance considerations, and recovery readiness.

Download the Wildfire Preparation Checklist to better understand your risks, strengthen your preparedness, and be ready to act when it matters most.

The Renters’ Rights Act 2025, the first phase coming into force 1^st May 2026, is aiming to satisfy many years of political pressure and campaigning to reform the private rental market in England. 

Since the Housing Act 1988, which was aimed to encourage investment in the private sector, by the introduction of “no fault” evictions, there has been a growing problem with housing insecurity. As early as 2017, campaigners were reporting such “no fault” evictions were a leading cause in the problem of homelessness. 

Along side the issue of evictions, there has been the ever present problem concerning the standard and maintenance of rented accommodation. Whilst the issue has been mired by political differences, the tragic death of two year old Awaab Ishak, bringing about the Social Housing (Regulation) Act 2023, which included legally binding timeframes for social landlords in England to investigate and repair serious hazards.  

Renters’ Rights Act 2025

So the Renters’ Rights Act 2025 is an attempt at major reform to the private rented sector in England. The provisions will be introduced in stages:

27 October 2025

• New local council enforcement and investigatory powers came into effect.

1 May 2026

• Abolition of Section 21 “no fault” evictions and transition of all tenancies to a rolling periodic agreement. 
• Landlords must give their tenants the required notice period for repossession and must be prepared to evidence their reasons in court. 
• The landlord can only get possession on specific proven grounds, such as rent arrears, selling or moving on, but decided by the Court if the tenant does not leave.  
• Rental bidding is outlawed. 
• Rent in advance is restricted to one month. 
• Landlord should not withhold consent to have a pet without good grounds.
• Discriminatory practices against tenants with children or adverts saying no “No DSS” are outlawed. 

Late 2026 onwards

• Introduction of Private Rented Sector database and extension of Awaab’s Law into the private rental market. 

The use of the term “periodic” tends to suggest regular or fixed intervals, much like the 6 or 12 month tenancies we have now, but the opposite is true. Rolling periodic tenancies means the tenancies are indefinite, i.e. no fixed end unless the tenant gives 2 months notice or a notice period pre-agreed by both parties.

From a loss adjusting perspective, the most notable changes relate to landlord obligations and tenant protections, and these will inevitably influence the size and complexity of future claims. To understand why, consider:

Greater scrutiny on the standard of existing accommodation

With stronger enforcement of property standards and faster remediation requirements, there may be less tolerance for prolonged reinstatement works or a will to stay in accommodation that has suffered moderate damage due to an insured event. Determining when a property is genuinely “uninhabitable” and for how long will need careful consideration. 

Greater pressure on repair timelines

Extended alternative accommodation periods may become more challenging due to regulatory expectations requiring prompt action.

Greater risk of underinsurance

If properties are not insured for adequate reinstatement values, particularly where compliance upgrades are needed, the shortfall could extend repair periods and impact AA duration. With the challenges already faced in finding reasonable AA for occupants, claim costs are very likely to rise putting pressure on existing policy limits. 

Greater complexity

With the introduction of the Act, tenancy agreements with an end date will automatically change to a rolling basis. Landlords will revise their conditions and loss adjusters will need to carefully consider the implications of the new arrangements and how they align with policy cover. This will not only impact on arrangements for the existing rented accommodation but also the temporary accommodation the occupant needs during the repairs. 

Potential advantages

On the flipside, could the end of 6 or 12 month tenancies potentially reduce the exposure for insurers, the displaced tenant having the ability to give a notice period when repairs are approaching completion. This will avoid paying rent on temporary accommodation when the original rental property is available for reoccupation. Potentially. 

Notwithstanding, it’s not hard to imagine if a landlord is seeing more volatility in the market, shorter tenancies, more difficulties in regaining possession and increased maintenance costs, we might expect rents are likely to rise to compensate. Time will tell. 

Global trade depends on the safe, efficient movement of goods across oceans, air and land. Yet behind every successful voyage sits a discipline that is often unseen, undervalued and misunderstood – marine surveying. Acting as a critical backbone of maritime commerce, marine surveyors provide independent, factual assurance that vessels, cargo, and infrastructure meet stringent safety, regulatory and operational standards. Through skilled inspection, measurement and analysis, they help protect assets, manage risk and uphold trust across the maritime ecosystem.

Marine surveying is not easily explained in a single sentence. It encompasses a broad and diverse range of responsibilities, from inspecting hull integrity and verifying cargo condition to investigating incidents and assessing environmental risks. These services safeguard shipowners, insurers, regulators and cargo interests alike, while supporting the reliability of global supply chains that depend on secure, timely delivery. Without accurate and impartial surveys, the risk of accidents, delays and financial loss would increase significantly.

In today’s increasingly interconnected and technically complex economy, marine surveyors are required to adapt continuously. Climate change, evolving regulatory frameworks and rapid technological advancement – such as remote inspection tools, data analytics and artificial intelligence – are reshaping how surveying services are delivered. By embracing innovation while maintaining technical rigour and professional integrity, marine surveyors continue to deliver critical value.  While much of their work occurs behind the scenes, its impact is felt across every port, shipping lane and logistics network worldwide.

Our Australian Head of Marine, Margot De Villiers, recently explored these themes in a feature article for Daily Cargo News, highlighting the growing importance of the profession and the opportunities ahead. Read the full article here.

This practical update builds on the trends report and offers clear steps to prepare so you can stay compliant, protect your people, and keep your programs running smoothly. 

1) The policy landscape: Key federal and state shifts to watch

Federal outlook: “Lighter touch” for now, then it depends on the midterms

Recent years brought notable federal rollbacks and court decisions that have narrowed agency authority. Practically speaking, that means fewer sweeping, new federal requirements and more reliance on existing rules. Enforcement continues, but with fewer resources in certain areas and a greater emphasis on clarity over expansion. The midterms could alter that trajectory, or reinforce it, depending on the outcome.

What this means for you: focus on the rules that are in force today, and have a plan ready for modest adjustments after Election Day. 

Pre‑election to‑dos (simple, high‑impact):

• Parity: Administer mental health benefits to the enforceable 2013 MHPAEA standard; pause work tied only to stricter, not‑in‑force frameworks.
• HIPAA forms & notices: Remove reproductive pre‑disclosure attestations and complete any remaining notice updates due in early 2026.
• FMLA math: Reconfirm overtime rules (mandatory vs. voluntary) in your leave calculations and manager training. Consider a paid self‑audit if it helps you fix old data or process issues without litigation.

Post‑election scenarios to anticipate:

• If control shifts: Watch for renewed conversations on PWFA definitions, parity enforcement approach, and possible federal guardrails for AI.
• If gridlock persists: Expect the states and courts to continue setting much of the pace; plan to operate to the strictest jurisdiction across your footprint.

State outlook: More PFML, more nuance, and more pressure on multistate employers

States are where the action is. In 2026, Delaware, Maine, and Minnesota will launch PFML benefits, and Coloradobecomes the first state with a NICU‑specific leave. Other states — Illinois, Michigan, New Mexico, Pennsylvania, Virginia — are worth close tracking as legislation advances. For hybrid and remote employers, the mosaic of eligibility rules, offsets, stacking, and qualifying reasons makes a one‑size‑fits‑all policy unrealistic.

Quick example: In Colorado, NICU leave can interleave with STD and bonding in ways your current plan might not anticipate — potentially affecting income replacement, offsets, and timing. A small wording change in your SPD can prevent big downstream issues. 

State readiness tips:

• Create a PFML “control sheet” listing each state’s qualifying reasons, waiting periods, offsets, and stacking rules — include examples your specialists can follow.
• Pre‑draft communications and configuration scripts for states most likely to move (IL/MI/NM/PA/VA) so you can flip changes live in weeks, not months.
• Add a NICU scenario to your Colorado training: birth‑related STD → pause for NICU → resume/bonding, with clear guidance on pay sequencing and documentation.

2) One big cross‑cutting topic: AI

AI is reshaping how absence programs work, but it’s also raising new regulatory questions. Several states (notably California) are setting guardrails for automated tools in employment and benefits. At the federal level, there isn’t a single, uniform standard yet, and post‑election shifts are possible. For now, the safest path is to adopt the strictest state expectations across your stack and keep humans in the decision loop. 

What we’re seeing (in plain terms):

• States out front: With no comprehensive federal statute in force, state civil‑rights frameworks are shaping employer expectations for AI in benefits and employment decisions.
• Human‑in‑the‑loop is table stakes: Across jurisdictions, fully automated approvals/denials are a red flag. Use AI to assist, not decide. 

Practical applications that help today (and keep you compliant)

• Triage & pattern recognition: Use AI to flag anomalies (e.g., unusual intermittent patterns or provider‑level outliers) so human examiners can prioritize reviews.
• Virtual assistants for “busywork”: Let bots handle intake FAQs and status checks so specialists can spend more time with complex cases.
• Forecasting & staffing: Deploy models that predict call volume and case complexity to right‑size your team and improve claimant experience. 

Mark your calendar: We’ll go deeper on responsible, human‑centered AI at DMEC in April, including how to use anomaly detection to curb intermittent leave abuse while keeping compassionate service and human judgment at the core. 

3) Practical implications for leave & disability leaders (checklist you can use)

Plan design & coordination

• Review STD/PFML offsets and stacking rules, especially where NICU, safe leave, or new qualifying reasons are in play.
• Build modular policy documents with state riders; stop trying to force a single national policy to fit every jurisdiction. 

People experience & RTW

• Replace “100% healed” expectations with flexible return‑to‑work pathways (reduced schedules, transitional duty) that align with ADA and modern case law trends.
• Expand mental‑health support and navigation; claims continue to rise across age groups and can intersect with PFML and STD. 

AI guardrails

• Keep humans in the loop for any adverse or eligibility decision.
• Maintain a model register (purpose, data sources, testing results, bias controls) and require vendors to provide explainability artifacts.
• Configure your system to the most restrictive state to avoid expensive re‑work later. 

Final thoughts

This is a complicated moment. You’re juggling real‑world demands — supporting employees, managing costs, hitting service levels — while the rules keep evolving. The good news: you don’t have to predict the future to be ready for it. By locking in today’s federal baselines, preparing for likely state changes, and using AI to augment compassionate human work (not replace it), you can reduce risk and deliver a better experience for your people. We’re here to help you do exactly that. 

Call to action: Dive deeper into the trends shaping 2026

Revisit our comprehensive Workforce Absence Trends Report for the full context behind these updates — regulatory shifts, new state programs, AI adoption patterns, and market forces shaping the year ahead. It’s a practical companion to this update and a helpful planning guide for your team. 

Attorney representation is happening almost immediately

Sedgwick data shows that among general liability claims that ultimately become litigated:

• 71% have attorney representation in place within 24 hours of notice.
• 83% were represented within 14 days 

Broader calendar year 2025 data shows a similar pattern. Among all general liability bodily injury claims, 56% had attorney representation within 24 hours, and 70% were represented within 14 days.

In practical terms, by the time many organizations complete internal incident reports and decide whether to submit a claim, plaintiff counsel may already be directing medical treatment, coaching clients and establishing a litigation strategy. This compressed timeline materially alters the risk landscape for organizations, reducing opportunities for early investigation, controlled claim direction and timely resolution. 

Attorney involvement is not merely a procedural milestone; it represents a clear inflection point for claim severity.

• New litigated general liability bodily injury claims average 14.4 times higher incurred than non-litigated claims and 5.5 times higher than auto bodily injury claims.
• New litigated auto bodily injury claims average 5.5 times higher incurred than non-litigated claims.
• Closed litigated claims, while representing only 2.9% to3.6% of total claim closures, account for roughly half or more of all paid dollars

For large organizations, This concentration of risk has direct financial and governance implications, including:

• Higher actuarial projections and increased reserve volatility.
• Greater scrutiny from chief financial officers, boards and insurers.

In an environment where a small subset of claims drives the majority of loss dollars, the timing of escalation becomes critically important. That escalation most often begins within the first 14 days. The data confirms that early attorney engagement has emerged as one of the most influential drivers of claim severity.

What should businesses be doing?

When attorney representation is occurring within 24 hours in more than half of litigated claims, traditional internal reporting timelines are no longer sufficient.

Organizations should evaluate whether they have the ability to:

• Identify high-severity and litigation-prone claims immediately upon first notice.
• Escalate attorney-involved claims within hours, not days.
• Retain investigation data, whether telematics, photos, videos and other incident data for sufficiently long enough times.
• Align claims, legal and analytics teams around shared severity indicators and decision protocols.

Severity is increasingly concentrated in high-dollar, litigated claims, making early identification critical to effective severity management. These high-complexity, high-severity claims can no longer be managed in  silos and require greater cross-functional collaboration.

The State of the Line data underscores a critical shift for large organizations.  The financial impact of auto and liability programs is no longer driven primarily by claim frequency, but by claim trajectory. When most litigated claims are attorney-represented within days of first notice, the first 14 days become the defining window in the life cycle of risk.

For corporate policyholders, this shift changes the playbook. Rapid reporting, evidence preservation and early escalation processes are essential. While the industry cannot prevent attorney involvement, organizations can control how prepared they are before it occurs.

In today’s liability environment, two weeks can be the difference between a manageable claim and one that materially affects the balance sheet.

The point-of-injury moment has changed, and employee expectations changed with it

A workplace injury is disruptive in every sense. The worker did not choose it, and suddenly their day, their routine and their sense of control are interrupted. In that moment, what they need most is not a complex process. It is an immediate, human answer. What should I do next? Where should I go? Is this serious?

Early nurse intervention meets that need in real time. Instead of leaving the injured worker to make a stressful healthcare decision alone, or default to the emergency room simply because it feels like the safest option, telephonic triage provides clinical direction and reassurance at the exact moment it matters most. 

Why “early” is the strategy: It is about influence, not just information

There is a difference between supporting a claim and shaping its outcome. The earlier a clinical resource is involved, the more opportunity there is to guide the injured worker to appropriate care, set expectations and build trust.

That is why timing is foundational. If you wait to engage a clinician weeks into a claim, the worker may already be established with a provider or even a specialist, making it far harder to influence direction of care and outcomes.

In other words, early nurse intervention is not just about triage. It is about creating the conditions for smoother recoveries, fewer delays, stronger adherence to care plans and better return-to-work experiences.

What early nurse intervention looks like: Simple for the worker, powerful for the employer

At its core, early nurse intervention is a modern front door to workers’ compensation care.

Sedgwick’s clinical consultation model is telephonic and nurse-led. When a non-emergent work-related injury occurs, the employee calls and speaks with a registered nurse in real time, before seeing a doctor. The nurse uses evidence-based triage guidelines to provide a recommendation, either self-care guidance or a provider referral.

For employers, the value is not simply that a nurse answered the phone. It is that this approach:

• standardizes the decision point with evidence-based guidance
• reduces variability in where and how care begins
• adds advocacy and education at the moment of highest uncertainty
• sets clear next steps, including helping the injured worker understand what happens after the call

This brings a nurse engaged from the very beginning to set the claim off with the right expectations and direction.

Virtual care is not the headline, but it is the natural next step for today’s workforce

In today’s environment, workers are more comfortable using telephonic and virtual channels than ever. That is why early nurse intervention pairs so well with virtual care options. The initial nurse call becomes the gateway to the right type of care, including telemedicine when appropriate.

If a provider referral is needed and the program is configured that way, Sedgwick can offer telemedicine through partners such as Concentra or Telecare Anywhere, depending on the client and state. The employee then has a virtual visit that can resolve the issue with guidance or route them into an in-person clinic if the virtual physician determines hands-on care is needed.

This is a key point for employer sponsors. Virtual care works best as an extension of clinical triage, not as a stand-alone substitute for in-person care. The nurse helps ensure telemedicine is used for the right injury types at the right time, supporting both clinical integrity and employee confidence.

The benefits for employers: Better outcomes, smarter utilization, less disruption

Employers sponsor these programs because they are accountable for two outcomes that are deeply connected:

1. claim performance and cost predictability
2. the employee experience

Early nurse intervention supports both, often in ways that compound over time.

Right level of care from the start

One of the most tangible value drivers is preventing unnecessary high-acuity utilization. A nurse-led front door helps avoid defaulting to the emergency room for non-emergent issues by providing immediate, clinically grounded guidance.

Faster answers, fewer delays, less productivity impact

When employees receive real-time triage and, when appropriate, a virtual visit, they can get direction without the extra friction of travel, waiting rooms and scheduling delays. This creates immediate access with no delays, along with the potential for the employee to avoid leaving work beyond the time needed for the consultation itself.

Better employee experience, which drives better claim behavior

Early nurse intervention adds an advocacy layer right away, listening, educating, explaining and helping the employee understand what comes next. This matters because trust and clarity early in the process can shape engagement, satisfaction with care and willingness to participate in recovery and return-to-work planning.

Beyond the first call: Extending early intervention with the right clinical resource at the right time

Early nurse intervention does not have to end after triage. Employers can choose to extend clinical support based on program goals and claim risk.

Options discussed include:

• nurse follow-up within three to five days to confirm satisfaction with care, understanding of diagnosis and needs related to recovery and return to work
• early intervention models that identify claims at risk through triggers and predictive insights, then engage a clinician to proactively manage recovery and return to work when claims extend past key thresholds

The guiding principle is simple. Deploy the right clinical resource at the right time so support matches the actual need.

Making it work operationally: Build a front door your workforce will actually use

Even the best-designed early intervention model depends on one thing. Employees must know exactly what to do when an injury occurs.

Sedgwick’s implementation approach includes practical tools such as custom 800 numbers by client, training, and materials like wall cards and wallet cards that outline the steps to take after an injury. Employer reinforcement matters too. Some organizations drive stronger utilization by training supervisors and regularly reminding teams of the point-of-injury pathway.

If you want modern outcomes, you need a modern front door, and you need to keep it visible.

The takeaway for employer sponsors: Modern access is now a claims strategy

Early nurse intervention aligns with how people live and work today. They expect immediate answers, personalized guidance and convenient access, often via phone or virtual channels. When employers meet that expectation at the point of injury, the benefits are significant. More appropriate care. Fewer disruptions. Better experiences. Stronger claim performance.

The real shift is strategic. Early telephonic nurse intervention is not just a service. It is a claims strategy. It is the moment when employee experience and cost containment stop competing and start reinforcing each other.

For employer sponsors looking to maximize savings while supporting better outcomes, this is exactly the kind of modernization that delivers results.

Global sporting events like the World Cup bring energy, economic opportunity and unprecedented foot traffic to host cities. They also bring concentrated property risk. From large stadiums and fan zones to neighborhood bars, retailers and restaurants, businesses near World Cup activity should be thinking now about how increased crowds, celebrations and temporary venues could impact their property, operations and insurance response.

Preparation does not mean expecting the worst. It means understanding your portfolio of risk, knowing what your policy covers and having a clear plan to protect people and property if something does go wrong. As Sedgwick’s property experts note, most World Cup‑related losses are not catastrophic fires or structural failures. They are far more often tied to glass damage, vandalism, crowd‑related incidents, weather and infrastructure strain, especially in dense urban areas. 

Start with your location, exposure and crowd profile

The first step for any business or venue is a clear-eyed look at where risk is likely to concentrate. World Cup activity rarely stays confined to the stadium itself. Fan zones, public viewing areas, pop‑up events and culturally aligned neighborhoods can draw tens of thousands of people night after night, even when games are not being played locally. 

For venue operators, this means expanding your planning footprint beyond the gates. For nearby businesses, it means understanding how close you are to celebration corridors, public transportation routes and gathering points such as parks, plazas and entertainment districts. Areas with heavy storefront glass and street-level exposure are especially vulnerable when crowds surge and emotions run high. 

Importantly, World Cup crowds are often celebratory rather than confrontational. Still, large volumes of people increase the likelihood of accidental damage, broken glass, minor vandalism and overflow incidents, particularly late at night or where alcohol is involved. 

Common property risks during large-scale sporting events

Based on prior large events and recent discussions with Sedgwick property specialists, several loss drivers consistently rise during World Cup–scale celebrations:

• Storefront glass damage from crowd movement, thrown objects or opportunistic vandalism
• Forced entry and looting in isolated pockets if crowds shift or policing is stretched
• Weather-related losses, including flooding in dense urban areas with stressed drainage systems
• Power outages that disrupt operations, security systems and payment processing
• Wear and tear on access points, roll-down gates and doors due to repeated opening, closing and pressure from foot traffic

These risks are amplified in cities hosting free public viewing areas that operate for weeks at a time, drawing large nightly crowds and relying heavily on temporary staffing and volunteer support. 

What venues should focus on before kickoff

Major venues and event hosts typically work closely with municipalities, law enforcement and fire safety teams, but property preparation still deserves focused attention.

Key considerations include confirming that fire safety measures and fire watch protocols are in place, especially in temporary or modified spaces, and that sprinkler systems, alarms and emergency access routes are fully operational. High‑occupancy events may require additional fire watch personnel and coordination with local authorities. 

Security planning should also account for the reality that many event staff are volunteers or temporary workers. Clear procedures, visible supervision and defined escalation paths help reduce confusion during incidents. From a property standpoint, that clarity can prevent small issues from becoming larger losses. 

Finally, venues should review insurance policies in advance to understand coverage for crowd-related damage, vandalism, business interruption and temporary structures, as well as reporting requirements if an incident occurs.

What nearby small businesses should do now

Small businesses near World Cup activity often benefit from increased traffic, but they also carry a disproportionate share of property exposure.

Preparation starts with the physical exterior. Business owners should inspect storefront glass, doors, locks and roll-down gates, and confirm that everything functions properly. If protective measures such as customized boarding are used, they should balance security with visibility so businesses remain welcoming during operating hours. 

Security systems are another critical area. Many businesses have alarms or cameras but lack familiarity with how they work or who to contact if something triggers. Owners should verify contact lists, monitoring procedures and response times, and ensure staff know what to do if an incident occurs. 

Equally important is employee readiness. Reviewing incident response steps with staff, much like a fire drill, reduces anxiety and confusion. When people know the process, they are better able to protect themselves and the business if something unexpected happens. 

Do not overlook weather, infrastructure and crowd volume

World Cup events often coincide with summer weather patterns, which can introduce additional risk. Flood-prone urban areas may experience localized flooding from even moderate rainfall when drainage systems are already taxed. Increased population density only compounds the challenge. 

Power outages are another concern. Out-of-town visitors, electronic payment dependence and crowded conditions can quickly turn a short outage into a significant operational disruption. Businesses should consider backup plans for lighting, security and transactions, particularly during peak event hours. 

Know your policy and your claims pathway before you need it

One of the most effective risk mitigation steps happens before any loss occurs: understanding your insurance coverage and claims process.

Business owners should review policies to confirm what is covered related to vandalism, glass breakage, theft, flooding, power interruption and business interruption, and whether deductibles or sublimits apply. Knowing documentation requirements in advance can significantly speed resolution if a claim is needed.

If damage does occur, timely reporting and clear documentation are essential. Photos, video, witness statements and records of when and how damage happened can all support a smoother claims process. Engaging experienced claims and loss adjusting partners early helps ensure appropriate assessment and faster recovery. 

Preparation supports opportunity

The World Cup presents enormous opportunity for host cities and local businesses. With thoughtful preparation, clear communication and a strong understanding of property risk, organizations can focus on welcoming fans and serving customers, not reacting to preventable issues.

For venues and businesses alike, success comes down to planning for what is most likely, not what is most dramatic. Inspect the exterior. Train staff. Coordinate with local authorities. Understand your coverage. And have a plan if something happens.

That kind of preparation helps ensure the only lasting impact of the World Cup is a positive one.

At the PARMA 2026 conference, Sedgwick’s Devora Brainard-DeLong, Vice President of Client Services and Shane Baird, Risk Services Manager of Pooling, joined public entity experts in the session, The heat is on: mitigating extreme working conditions to discuss the growing impact of extreme heat conditions on worker health and safety. Their insights reinforced a key message: heat illness is both predictable and preventable when employers adopt consistent monitoring, training, and early-intervention practices. 

Sedgwick’s Heat Illness Prevention Guide highlights key takeaways from the session and shares practical steps, compliance insights and risk mitigation strategies to help protect your organization and employees from heat illness and its complications.  

Insights from California’s evolving heat safety standards 

California has a 20‑year history with heat illness prevention regulations, beginning with a 2005 emergency rule adopted by Cal/OSHA after five farmworkers died from heat illness. The regulation — the first of its kind in the U.S. —became permanent in 2006 and was later amended in 2010 and 2015. 

These updates strengthened requirements for shade, alternative cooling methods and employee monitoring when temperatures reach or exceed 95°F. Today, these regulations apply across industries including municipalities, agriculture, parks and recreation, construction and landscaping. 

Why does heat illness prevention matter? 

Together, these long‑standing standards underscore a growing need for employers to understand and actively respond to the rising heat risks facing today’s workforce.  

As temperatures continue to climb across California, the risks to employees are increasing just as quickly. Nine of the 10 warmest years on record have occurred since 2014, and inland communities are projected to endure the sharpest spikes. For example, Visalia is expected to see 32 days above 103°F — up from 17 — adding more than a month of extreme heat. Statewide, days above 90°F are projected to climb from 51 this decade to 78 by 2041, signaling a significant shift in everyday working conditions. 

These rising temperatures amplify the common factors that affect employee health and productivity, including: 

• Air temperature and movement 

• Relative humidity 

• Radiant heat from the sun and other sources 

• Conductive heat from the ground 

• Workload severity and duration 

• Personal protective equipment and clothing 

Turn heat risk insights into action 

When supervisors are well-versed in heat illness prevention plans and protocols, they help create a safe and comfortable working environment for everyone. Our guide provides a deeper dive at: 

• The latest insights on heat-related risk trends 

• Evolving heat-risk regulations 

• Rising exposure and workplace impact 

• Proven prevention strategies and actionable checklists 

Sedgwick is committed to helping organizations stay ahead of emerging risks. With expert resources, a robust data set and next-level technology, we’re ready to support your needs as regulations rapidly evolve.  

Download the full guide to strengthen your heat safety program. 

During Sedgwick’s recent In the Know webinar we discussed what’s driving this shift, why “business as usual” approaches are falling short, and where tort reform and litigation funding transparency could create meaningful change. This article highlights select themes from that discussion — while the full webinar goes deeper into jurisdictional nuance, claim strategy implications, and what risk leaders can do now to stay ahead.

Watch the full In the Know webinar now →

Litigation climate: Conditions and drivers

Jury sentiment is evolving, particularly among younger jurors who tend to be more skeptical of large institutions and more open to awarding significant damages. At the same time, plaintiff attorneys are engaging earlier than ever — nearly two‑thirds of liability claims that become litigated involve an attorney within the first two weeks.

Although fewer than 1% of claims are litigated, severity continues to rise, creating outsized financial exposure and influencing settlement strategies well before trial.

Nuclear verdicts remain a pressure point

Verdicts exceeding $10 million remain relatively rare, but their influence is widespread. Median verdicts have increased by roughly 15%, reshaping expectations around settlements, reserves and excess casualty pricing — even for organizations that never see a verdict.

The webinar explores why these outcomes are occurring and how their impact extends far beyond the courtroom.

Florida shows how reform can shift outcomes

Florida’s 2023 tort reform package offers a compelling early case study. Post‑reform data shows litigation volume down by roughly 30%, alongside improving severity trends in new bodily injury claims. While still early, these shifts suggest comprehensive reform can meaningfully influence claim behavior and outcomes.

What risk leaders should be thinking about

Panelists emphasized that organizations don’t need to wait for legislation to act. Aligning internal stakeholders, reassessing exposure in key jurisdictions and engaging thoughtfully with reform efforts can all help organizations better navigate today’s legal environment.

Looking ahead

Sedgwick will continue to monitor legislative activity across states as 2026 sessions advance. We expect further movement in states that introduced — but did not finalize — reform measures in 2025. We also anticipate additional insights from Florida’s post‑reform trend lines.

Sedgwick will host periodic updates and we’ll notify participants about future webinar dates and resources.

In the Know

Watch the full webinar

Explore deeper analysis, data and actionable insights. 

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Turn AI concepts into improved recovery results.

An inside look at workers’ comp.

Metrics that matter: using data analytics to keep WC claims on track

In our experience, the real constraint is not access to tools — it is helping people apply judgment within well‑designed workflows. We start by focusing on the review and decision moments that slow teams down. We build trust through side‑by‑side comparisons, measure time saved and quality gains, and scale only what proves its value. We also prioritize compute for the highest‑impact use cases and keep clear decision boundaries so people remain accountable. When colleagues learn in the flow of work and leaders invest where results are clear, a capability overhang becomes tangible improvements in cycle time, accuracy, and client experience.

How Sedgwick approaches AI adoption with people at the center

At Sedgwick, we follow a guiding principle: AI supports colleagues and does not replace them. Human expertise stays at the center of claims, analysis, and decision‑making. AI helps by removing friction, returning time to our teams, and elevating the moments that require judgment and empathy.

• Daily enablement with Microsoft 365 Copilot
  • Colleagues receive practical learning and support so they can use Microsoft 365 Copilot to draft, summarize, and research. The goal is confidence and time back in the day. These are low‑risk, high‑benefit activities that build familiarity and momentum.
• Assisted decision support for examiners and adjusters
  • AI prepares concise summaries and surfaces the details that matter, so adjusters can apply their expertise faster. This often saves minutes per task and, more importantly, builds comfort as colleagues compare outputs with their own judgment.
• Developer enablement through co‑pilotage
  • Our developers use tools like GitHub Copilot and Cursor to accelerate coding and generate documentation automatically. Less time on repetitive tasks means more time solving problems for our clients.
• Internal communities that encourage organic adoption
  • We host a Teams community where colleagues share quick wins and practical tips. Real stories from peers make adoption feel natural and invite everyone to participate.
• Automation in operations
  • We are advancing automated quality assurance, automated test generation, and self‑healing infrastructure. The outcome is fewer manual checks and more time for strategic work that serves clients.

A practical framework to overcome the AI capability overhang

You do not need sweeping change to see real benefits. Progress comes from steady steps that build skills, trust, and thoughtful workflow design.

1. Start with the real problems to be solved

• Identify the operational moments where AI can reduce effort or improve accuracy — like triage, document classification, summarization, and routine QA. The lesson is consistent: support better decisions rather than generating more content.

2. Build trust through side‑by‑side comparison

• Invite colleagues to compare AI outputs with their own. Early, low‑risk trials build familiarity and quickly show where the system helps most.

3. Develop a role‑based skills roadmap

• Offer training that fits each role.
  • responsible use for everyone
  • adjuster workflows for summarizing and evaluating materials
  • client‑communication support
  • developer practices for AI‑assisted coding and documentation

• This keeps learning relevant and helps every colleague see how AI supports their day‑to‑day work.

4. Use clear guardrails that define decision boundaries

• Keep human judgment at the center. Provide clear guidelines for when to escalate to experts so colleagues know when AI recommends and when people decide.

5. Expand communities of practice

• Lean on champions and peer groups. Shared examples often accelerate adoption faster than formal training alone and help tools scale across teams.

6. Measure value with meaningful metrics

• Measure what matters
  • cycle time saved
  • accuracy and rework
  • usage patterns
  • colleague confidence and satisfaction

• Use these signals to decide where to invest next.

7. Move toward responsible industrialization

• As adoption grows, strengthen monitoring, performance tracking, and prompt reviews. These practices keep the technology reliable and the experience trustworthy.

Turning capability into real organizational advantage

AI capability is growing quickly, but value shows up when people can use it with confidence and care. Our experience is clear: the model is important, yet the human skill around it is what unlocks results.

Winning organizations do four things well:

1. Invest in training
2. Help employees build trust in AI
3. Measure meaningful outcomes
4. Scale only what proves its impact
   

We will continue to expand everyday use of Copilot, add AI assistance at key moments in the workflow, and automate operational burdens. Most importantly, we will bring our colleagues along on this journey — step by step — because for us caring counts. AI is here to enhance their work, and together we can deliver faster responses, clearer communication, and better outcomes for our clients and the people they care for.

Below is a recap of their discussion.

Segment 1. Catastrophe Risk: The New Baseline in the U.S. (starts at 02:22)

Kimberly opens the conversation by highlighting findings from Sedgwick’s global risk study:

• 76% of U.S. organizations expect moderate to severe insurance and claims challenges from catastrophe risks within the next two years.
• 66% conduct catastrophe assessments annually or more often.

Scott shares that CAT planning is no longer centered solely on “traditional storm seasons.” Today, organizations must consider:

• Weather volatility
• Social unrest and vandalism
• Employee impact and location-based exposure
• Supply chain disruptions
• Business continuity beyond physical structures

He emphasizes that both corporations and carriers are proactively mapping their risk exposure, identifying vulnerable regions, and establishing plans that account for operational, workforce, and logistical impacts — far beyond the old “brick‑and‑mortar only” mindset.

Segment 2. Property Claims Realities: Physical Barriers and the Complexity Behind Recovery (starts at 09:02)

In this segment, Kimberly and Scott discuss what really happens when a large‑scale event occurs.

Scott explains that structural damage often represents only part of the loss; in many cases, business interruption and supply chain disruption have the largest financial impact.
He notes that today’s lean manufacturing models and just‑in‑time inventory systems create added vulnerability.

To help organizations recover more quickly, Scott stresses the importance of:

• Understanding operational workflows before a loss
• Building clear continuity plans
• Identifying critical suppliers and backup options
• Leveraging modeling and forecasting tools to anticipate severity and impact

Technology plays a role, but keeping systems updated and anticipating resource scarcity during major CAT events are equally critical.

Segment 3. Scenario Planning & Resilience Strategies (starts at 12:54)

Kimberly asked how organizations should activate their CAT playbooks and what early warning signals matter most.

Scott recommends treating scenario planning as an annual (or more frequent) exercise, preferably outside peak disaster seasons. Leaders should evaluate:

• Employee wellbeing and ability to remain operational
• Infrastructure and supply chain dependencies
• Vendor partnerships and resource capacity
• Local population density, which affects both impact and recovery time

He also highlights the growing demand for temporary housing and relocation services, noting that companies increasingly plan ahead to keep employees close to worksites and support continuity.

Finally, Scott underscores a key point: strong vendor relationships, including with third‑party administrators, can make or break an organization’s ability to recover quickly.

Segment 4. Looking Ahead: Sedgwick’s 2026 Property Vision (starts at 15:50)

Kimberly closes by asking Scott about his priorities for 2026.

Scott shared that Sedgwick is in the midst of a significant transformation, integrating AI and advanced technology into property workflows to improve both cycle time and quality. While AI isn’t a “silver bullet,” the thoughtful, strategic application of automation will:

• Streamline administrative tasks
• Reduce redundancy
• Accelerate claims resolution
• Improve consistency and quality reviews
• Help communities recover faster by speeding up the flow of funds and repairs

He also discusses Sedgwick’s combined property solutions — repair networks, relocation services, contents management, and more — which help deliver a simple, integrated experience for policyholders and carriers alike.

Watch the Full Conversation

This episode offers valuable insights for risk managers, carriers, and business leaders navigating a rapidly changing CAT landscape.

To hear the complete conversation between Kimberly and Scott:

Watch the full podcast video: https://www.youtube.com/watch?v=p1ezNYo8C5Y

Or download the episode: https://www.podbean.com/eas/pb-mbvnh-1a43ff2