Why the early days of a liability claim matter more than ever

In the high-stakes world of liability claims, one trend is becoming increasingly clear: The window to influence the outcome of a claim is closing faster than ever. 

According to Sedgwick’s 2025 liability litigation commentary paper, a significant majority of claimants who eventually litigate are securing legal representation within just two weeks of filing their claim. Specifically, 64% of general liability and 75% of auto liability claimants have an attorney involved within the first 14 days.

This rapid escalation isn’t just a statistic. It’s a wake-up call for insurers, third party administrators and risk managers. The early days of a claim are now the most critical period for influencing outcomes, managing costs and avoiding litigation altogether.

What’s driving the acceleration?

Several factors are contributing to this trend of early representation. One reason is that attorney marketing and outreach are growing more sophisticated. Gone are the days when attorney advertising was limited to billboards and late-night television. Today, personal injury firms are leveraging social media platforms like TikTok, YouTube and Instagram to reach potential clients within minutes of an incident.

Lead generation services are also playing a major role. These services use online data collection and targeted advertising to identify potential claimants and connect them with attorneys in real time. Some even offer “live transfer” capabilities, where a claimant can speak with an attorney within just five minutes of submitting their information.

This aggressive outreach is effective. A 2024 LexisNexis study found that 85% of people involved in auto accidents were contacted by at least one attorney, and 60% were contacted by two or more. The result is a litigation environment where the defense has less time than ever to build trust and resolve claims amicably.

The cost of delay

Once an attorney is involved, the dynamics of a claim shift dramatically. Legal fees increase, timelines extend and the likelihood of a nuclear verdict rises. The earlier a claim can be resolved, the better the outcome tends to be for both the claimant and the insurer.

Sedgwick’s data shows that claims with early attorney involvement are significantly more likely to result in litigation. And once litigation begins, the average cost of a claim can increase by several multiples.

Strategies for early engagement

To counter the impacts of this trend, organizations must rethink how they approach the first 14 days of a claim. They can do this by:

• Investing in seamless intake technology: A smooth, transparent intake process builds trust from the start. Claimants who feel heard and supported are less likely to seek outside legal help.
• Training for empathy and communication: Claims professionals need more than technical knowledge. They also need soft skills like empathy, active listening and clear communication to build rapport and reduce friction.
• Using predictive analytics: Advanced modeling can identify high-risk claims early. This allows organizations to route them into specialized workflows that prioritize resolution and minimize escalation.

The bottom line

The first two weeks of a liability claim are no longer just the beginning – they’re the most critical time to influence its direction and outcome. Organizations that fail to effectively engage with claimants during this period see increased risk for litigation and significantly higher claim costs. But with the right early engagement strategies, organizations can foster trust, build rapport and reduce the likelihood of legal escalation.

For more insights, benchmarks and recommendations for early engagement strategies, download our 2025 liability litigation commentary paper.