New Loss Department
Experience shows that the seeds of litigation failure, even for claims with good recovery potential, are sown when the investigation process is delayed. Prompt investigation of the scene and careful retention of evidence are as important to successful a recovery as developing a sound and creative litigation strategy.Prior to 1998, we investigated losses like all other subrogation firms and had our litigation attorneys litigate cases and investigate losses for subrogation potential. What we learned, however, is that when an attorney is on trial or in a deposition, he or she simply does not have the time to properly investigate a new loss. Therefore, in 1998 we pioneered the concept of a ‘New Loss Department’. It is comprised of a team of attorneys, paralegals, administrative support personnel and our own in-house origin and cause investigator, all of whom have one job: to ensure that a good claim can become a recoverable claim.
The New Loss Department only handles the tasks associated with investigating a new loss. Since our New Loss Department is devoted entirely to investigating new losses for subrogation potential, it allows our litigation department to focus aggressively on litigating cases and recovering money through settlements and verdicts.
Its mission is to take control of the site investigation and to identify actual and contributing causes of loss. It’s also charged with preventing the accidental or willful destruction of key evidence, and retaining it for trial. Finally, it’s in charge of coordinating communication with the insured, the first party adjuster, local officials, contractors, and other third parties, including those who may be fully or partly to blame for the loss. Return to top …
The Process
Our in-house expert contacts the local officials to get an understanding of the facts. He then, in conjunction with an attorney, hires the expert most appropriate to handle the particular loss. While this is ongoing, our support team is reaching out to the insured and anyone who may be involved with the loss, including but not limited to, public adjusters, independent adjusters, restoration contractors, cleaning companies, etc… Our support team instructs these individuals to avoid disturbing the scene until after the investigation is complete. Numerous letters are sent and phone calls are made on “day one” to ensure that the ultimate investigation goes smoothly.
Next, the expert, and often times one of our attorneys, travels to the scene to determine avenues for recovery. This investigation is generally performed side-by-side with local officials. In the event a responsible third party is identified, the process “ramps up” and notice letters are sent via email and/or fax that same day to all responsible parties identified. Thereafter, a joint inspection is conducted between our team and representatives of the responsible parties. Once all interested parties have inspected the scene and agree upon the evidence to be retained, the scene is released so that our client and its insured may continue with the cleanup and restoration process.
The tasks described above are performed on all losses. Clearly, large losses require more time and
resources. However, the unique process we have developed allows us to investigate all losses in a cost-effective manner, regardless of whether the loss is $25,000 or $100 million. For clients, it's the best of both worlds — a detailed, prompt investigation into possible theories of recovery, and a team of well-respected aggressive litigators who can turn these theories into results. Return to top …