News & Insights

Digging deeper into construction claim background boosted payout

Published 12 April 2022

Landing a new construction account meant that Gallagher also inherited the large company’s unresolved claims. Not only that, but a key claim was with a London based insurer involved prior to Gallagher working with this client. The claim itself had involved some complexity and our client had engaged their own legal firm to help defend against the loss, but the insurer hadn’t agreed to this arrangement ‒ or the costly fees charged.
 

 

Background

When the costs were submitted to the insurer’s underwriters they reviewed the sums involved and then offered 60% reimbursement for legal fees  as a fair and reasonable amount, citing the failure to obtain agreement first and the fact that other information hadn’t been presented in a timely fashion.

But the Gallagher claims advocate re-examined the construction company’s claims case and discovered that the fault for the insurer not receiving key information lay elsewhere, not with the client who had in fact communicated relevant updates.
 

Resolution 

Another factor was that by engaging the new (and more expensive) legal counsel the claim had been resolved without the need to pay settlements to third parties: a considerable saving for the insurer.
The underwriters agreed that the client had behaved entirely reasonably and consented to paying 90% of the legal costs claimed – a much better outcome.
 

We pride ourselves on our claims service

Part of our commitment to building business confidence is fighting for what’s right, and supporting clients through claims is one of our key pillars of business practice.

Gallagher claims expertise and 17 case studies are outlined in the Gallagher Advocacy in Action report where you can read more about this oil production claim in detail and other examples from professional indemnity to corporate travel. 

Download the report Claims Advocacy in Action: 17 Real Life Case Studies now. 

Further reading

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Gallagher provides insurance, risk management and benefits consulting services for clients in response to both known and unknown risk exposures. When providing analysis and recommendations regarding potential insurance coverage, potential claims and/or operational strategy in response to national emergencies (including health crises), we do so from an insurance and/or risk management perspective.
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