Subrogation recovery action helps client recover large uninsured loss
At Liberty, we understand that better recoveries lessen the impact to the insured’s claims profile and assists to keep premiums at manageable levels.
Because of this, across Asia Pacific we provide a dedicated claims recovery service focused on handling subrogated recovery actions. The recoveries team is always looking out for our client’s best interests.
Recently one of our clients, a manufacturer of a packaged food product, had to perform a large product withdrawal due to faulty packaging. This claim was significant. Liberty paid their Withdrawal Extension claim on their Product Recall policy within three months of notification, however they were still left facing a $1m uninsured financial loss.
Although the bulk of the loss was not covered, Liberty’s claims recovery service moved quickly, and offered to help the client run a recovery process against the packaging company that were responsible for the faulty packaging that led to the withdrawal taking place.
Oversight, negotiated discounted rates and tenacity
To contain the litigation expenses, the team engaged one of our panel law firms with expertise in running recovery actions to instigate litigation on behalf of the client at Liberty’s negotiated discounted rates. Our team also supervised and worked with the law firm to ensure that the matter was prosecuted with some urgency and that decisions continued to be made in the client’s best interests. Finally, experts were sourced to provide evidence which established the liability of the third party and provided a solid foundation to support the quantum of the claim.
The outcome was that the recovery action was settled and returned a payment to our client representing 75% of the total assessed loss.
The client was very happy with the outcome as the costs and risks of taking this matter to trial were substantial.
For mutual advantage
Our insurance cover exists in the broader context of our clients’ business operations and our recoveries team don’t hesitate to assist clients recover uninsured losses.
Liberty will always look at the bigger picture, and are an insurance partner, rather than an insurance supplier.
Watch a short video (1min & 48secs) to find out more.
