The Insurance Tracing Problem

A US corporation purchased a UK Plc in March 2009 for USD492.1 million. The UK Plc historically owned over 100 UK companies. It has become a target for numerous long tail Employers’ Liability (EL) claims – over 140 in past 12 months (mainly deafness). The UK Plc had significant gaps in cover and some difficulties understanding corporate liability and TUPE issues. In the past US client had paid some claims for which they had no legal liability. The client contacted InSolutions as we offer a dedicated UK insurance tracing and archaeology offer that also studies corporate liability issues


The insurance tracing solution

First we complete a Companies House tree, noting the historic trading names, with notes on their current legal status and TUPE links to other companies. This generates a template for us to use. On a claim by claim basis we review the corporate history of the employing companies, assessing the  legal liability to the client and report on liability/TUPE. If required we trace gaps in their EL cover. Our partners in Marsh claims then deal with claimant solicitors and the insurance market. In the first nine months we have analysed over 140 claims, finding liability against the client for only 38 and redirecting claimant solicitors on the remainder. We have successfully traced insurance cover for several of those claims including two high value mesothelioma losses.


Benefits of a managed  insurance tracing service

Our client now has a far better understanding of where their liabilities lie and through our work have a more comprehensive insurance history. InSolutions has proven that the client has no legal liability for claims which, if aggregated, would have cost in excess of £2,000,000.