3rd Party Insurance Recovery

The client.

A petrochemical company.

The business issue.

This company was engaged in a lawsuit with primary insurance carriers regarding reimbursement of asbestos and other toxic tort claims. The primary carriers had taken the position that its primary limits were fully exhausted under specific “occurrence” arguments.

The client wished to resolve the uncertainty surrounding its primary and excess coverage and begin receiving reimbursement – that is, achieve a “Coverage in Place” agreement.

The solution.

The Claro Group, together with legal counsel, took the following steps:

• Accumulated past defense and indemnity costs (reimbursed and unreimbursed).
• Projected potential future defense and indemnity costs.
• Developed and analyzed hypothetical terms for the Coverage in Place agreement.
• Presented cost projections and terms to primary and excess carriers at court-directed mediation sessions.
• Achieved a settlement agreement among parties.

The results.

This approach enabled the client to:

• Receive a significant reimbursement of overdue insurance receivables due to resolution of the lawsuit.
• Minimize the risk of exceeding the upper limits of its agreed-upon coverage.