Exposure Analytics & Liability Estimation
Damages Quantification & Liability Estimation
Stout has a long and deep history performing damages quantification, liability estimation, and related analytics in large scale and high-profile matters. Our work has been used in support of financial reporting, M&A transactions, settlement decisions, and expert testimony in litigation. We perform a full analysis of damages and, where appropriate, defense discounting. We also have models to allocate damages in multi-defendant claims based on various economic methodologies.
For mass tort claims, Stout leverages litigation risk assessment techniques and decision tree analysis to assess liability exposures from the ground up on a claim-by-claim basis. We work closely with clients and their counsel to understand key drivers of damages, quantify risks associated with claim defenses, compile data on verdict and settlements for potentially comparable claims, and extract relevant claim attributes. Stout has leveraged these methodologies to assist with the resolution of exposures ranging from seven figures to over $1 billion.
Business Interruption Worksheets/Reported Value Quantification
Stout’s experience working on major business interruption (BI) claims and exposure analyses uniquely positions us to evaluate BI exposures for insurance scheduling and risk transfer assessment purposes. Our professionals have seen many instances in which reported BI values are inconsistent with the policyholders’ actual BI exposure. Determining appropriate BI values and limits is an often overlooked but critical step in managing business interruption risks. Stout assists policyholders across a wide range of industries to minimize potential discrepancies between BI values and exposures by providing a factual and analytical basis for assessing the risk and quantifying values for reporting.
Business & Liability Impact Studies
Stout has vast experience assisting our clients and their brokers across numerous industries, assessing potential exposures through detailed statistical modeling/valuation of various maximum probable loss scenarios. Our teams work with the client’s key personnel from operations, finance, legal, and risk management to identify the major exposure scenarios for potential liability exposure of most concern.
Stout utilizes probabilistic estimation methodologies based on company/asset specific information combined with comparison costs and impacts for analogous exposures obtained from publicly available sources to develop cost drivers and model a range of maximum probably loss outcomes. Stout’s analytics provide a statistical range of outcomes to allow our clients to make educated risk-based decisions regarding mitigation efforts, insurance limits, and other key management decisions.
Litigation Risk Analysis
Stout can assist our clients and their counsel in assessing potential exposures through detailed statistical modeling/valuation of legal and damages outcomes. Damages are evaluated at the plaintiff-level, incorporating plaintiff-specific losses, injuries, and the client’s legal defenses to asserted claims. Stout’s analytics provide a statistical range of outcomes to allow for educated, risk-based decisions. Stout has worked alongside many defendants and outside counsel to support negotiations with municipalities, regulatory agencies, and class action plaintiffs’ counsel in matters with over a billion dollars at stake.