Liability Claims Investigation Blood, Fire, Rubber and Smoke 24 September 2008 Tom Battell , Adjusting Solutions LLP Dav

1. Liability Claims Investigation Blood, Fire, Rubber and Smoke 24 September 2008 Tom Battell, Adjusting Solutions LLP David Martin, Adjusting Solutions LLP

2. Introduction and Content Presentations • Tom Battell –Liability Investigation Overview • David Martin – Product Liability Investigation Workshops • Explosion Case Study • Case Study Feedback • Questions

3. Purpose • Widen understanding of investigation and strategy on liability claims • Improve performance in delivering the policy promise • Reduce risk of the “tail wagging the dog”

4. THE APPROACH • What has really happened? • When did event/breach and loss occur? • How did it occur? • Who are the parties? • Where is the alleged injury/loss/damage? • Why might there be a liability or a defence? BE OPEN MINDED – NO PRECONCEPTIONS BE NICE!

5. First Steps - Desktop (before visiting site) • Insured background/business/people • Previous losses/incidents • Market/competitors/customers • Web/Financial/Locus search • PR Issues • Legal Research • Coverage • Claimant(s) and representatives BE PREPARED

6. First Steps - Site Visit • Safety • Create Good Relations • Evidence/Records/Circumstances • Experts/Statutory Bodies • Containment and Mitigation • Parties/Relationships/Contracts • Subrogation/Recovery Aspects ALL EYES and EARS

7. Parties and Agendas Customers Adjusters Lawyers Insured Suppliers Assessors Claimant (s) Statutory Bodies Broker

8. THE INVESTIGATION Which Route? Defective Product Defective Workmanship Inadequate Advice Negligent Actions Negligent Omissions All of the above Pure Accident AVOID RED HERRINGS - HOOK THE MACKEREL NOT THE SPRAT!!

9. EVIDENCE GATHERING (Get it while you can!) • Physical Evidence • Recorded Evidence • Documentary Evidence • Witness Evidence • Expert Evidence • Circumstantial Evidence PRESERVE WHILE ALLOWING MITIGATION

10. THE LEGAL ROUTE • Contract, Tort, Strict or Statutory • Duty owed, Breach of Duty, Resultant Loss, Foreseeability • Contractual terms and UCTA • Limitation, Minors, Latent Damage • Effective date of action • Contributory Negligence • Subrogation Don’t let the legal obscure the straightforward

11. Progressing the Claim Quality Case Management • Manage Expectations • Salient and Tactful Enquiries • Appropriate Communication to All • Early Notice of Uninsured Aspects • Prompt Actions and Updates

12. Progressing the Claim Quality Case Management – cont. 6. See the Whole Picture 7. Clear Strategy and Direction 8. Cohesive Assessment and Reporting 9. Continuous Financial Appraisal 10.Commitment and Impetus to Closure

13. Policy Application – or not • Damage/Injury must be sustained • Pure Financial Loss • Claims made or losses occurring • Retroactive dates • Conditions precedent to liability • Own property exclusion • Penalties and fines • Series claims and deductibles

14. Product Liability Investigation • Case Study • Leading edge print cartridge • Ink supplied to spec by TP supplier • Reformulation by TP causes blockages • All direct customer claims resolved – except one using standard terms • Negotiated agreement • Low value low volume account • Claimant’s customers high profile and badly affected

15. The Claimants position • Business badly affected • Replacement printheads • Additional expenses (engineers etc) • Loss of direct sales • hardware • software • Loss of indirect sales • hardware • software

16. Words, words and more words! • Sales & Purchase Conditions • Negotiated Contracts • Specifications • Installation & Usage Instructions • Statutory Requirements • Insurance Coverage • Legal Compliance • Statements

17. The Contractual Snake

18. The Loss Pyramid Potential Scale, Exposure Risk and Cost Increase

19. Liable or just bluffing? • Statute • Tort • Contract • Territory • Custom • Appointment of team playing lawyer

20. Policy Application – or not • Product supplied (not service given) • Damage or not ! • Pure Financial Loss • Claims made or losses occurring • Retroactive dates • Own product/component exclusion • “Rip ‘n Tear” • Series claims and deductibles

21. What’s it worth? • Injury, Physical or Financial • General, Special and Liquidated Damages • Measurement of Loss • Limitations • Mitigation effects • Savings • Structured Reserving

22. Subrogation • Often forgotten or left late • Preserve evidence, take statements • Give early notice and reasonable documentation • Offer inspection facilities • Enforce contract terms • Consider CFA options • Chase, Chase and Chase again !!!

23. Enterprising Solutions • Timing and Early Settlements • Win - Win agreements • Joint/Multi-Party • Cut Through Settlements • Reputational Risk Appeasement • Commercial Settlements • Apologies, Grovelling and all others forms of Repentance

24. CONCLUSION • Be open minded • Desk top preparation • Thorough site investigation • Secure evidence - consider experts • Check legal routes and defences • Ensure quantum properly logged • Support mitigation • Be enterprising – create a resolution