Uninsured loss recovery (ULR) services take many forms, and it is true that there is no one-size-fits-all solution. However, in our view, any corporate entity managing a fleet of vehicles should have an uninsured loss recovery programme designed to recover the maximum value of losses arising from non-fault road traffic incidents.
Recovery process limits
Too often, uninsured losses are limited to invoiced repair costs or policy excesses. These elements are straightforward to evidence and recover, but when they become the limit of the recovery process, businesses may be leaving significant value unclaimed. This situation can arise where a recovery provider operates under a fixed-fee arrangement, sometimes offered as an add-on to an insurance policy. When ULR fees are capped regardless of outcome, providers may be incentivised to prioritise speed and volume over maximising recovery values. Very often recoveries are focussed on the easy to document, invoiced heads of loss of repairs or excess.
By contrast, the most effective recovery programmes align the interests of the client and provider. When a ULR provider is incentivised to maximise recoveries, both parties benefit from continuous improvement, robust challenge of third-party positions, and a focus on achieving the optimum outcome in every case.
Unlocking greater recovery value
One of the ways a ULR provider can unlock greater recovery value is through the assessment of losses associated with a vehicle being out of service. In some cases, this may involve the cost of a replacement hire vehicle, which is relatively easy to document. However, where no hire vehicle is used, losses may instead arise from loss of use, the cost of idle capital invested in the damaged vehicle, or the expense of maintaining spare fleet capacity. These losses can be more complex to quantify, but an experienced ULR provider should have established methodologies to support and evidence them without creating unnecessary administrative burdens for the client.
Similarly, where a damaged vehicle generates revenue, the loss may extend to reduced operational income or disruption to service delivery. Again, a capable and motivated ULR provider should possess both the expertise and determination to pursue recovery of these losses effectively.
The process does not end with the assessment of losses. Inevitably, some claims will face resistance from third-party insurers, whether through delayed engagement, disputed liability, or challenges to claim values. In these circumstances, the true strength of a recovery programme is tested.
Using litigation to pursue outcomes
One of the most effective tools available is litigation. A provider with legal capability can use the full force of the law to pursue the outcomes to which claimants are entitled when losses arise through the negligence of others. Importantly, the potential costs and risks of litigation should be factored into the ULR arrangement, ensuring that both client and provider share a common interest in securing the best possible result.
At Corclaim, our fee structures are designed to align our success with that of our clients. We are incentivised to maximise recoveries, working in genuine partnership and supporting a culture of continuous improvement. As part of a law firm, we can also issue court proceedings without delay when required, helping clients recover losses efficiently while reducing unnecessary delays caused by third-party insurers.
Working with us
If you’re interested in discussing how your business could benefit from our uninsured loss recovery services, whether for motor, property or highways, please don’t hesitate to contact our team today. Being specialists in ULR, we’re dedicated to making sure every opportunity for loss recovery is explored thoroughly.
Contact our team today if you wish to discuss how we could help your business. Call us free on 03300 945 100.
Author: Ian Evans