The UK’s most comprehensive service
We are independent specialists, providing the UK’s most comprehensive insurance recovery service for companies in administration. We’ve never failed to recover significantly more than the client expected and have a 100% track record on all our client engagements.
Insurance Premium Recovery
Most commercial insurances are annual policies paid in full at inception, with adjustments on expiry. If a company goes into administration part-way through a policy period, there is usually a return premium due. This could be a considerable amount, but often it’s never pursued, or is rejected by the insurer without grounds.
We have a wealth of experience and expertise in reviewing the technicalities of insurance contracts, and assessing the figures and circumstances that may lead to a potential return premium. Once instructed, we’ll work with the insurance brokers and companies to negotiate the full return of any outstanding premiums.
Some contingent insurance contracts only come into force when a number of conditions are met. In these cases, the client pays a deposit premium that might be due to the liquidators if the company fails before the conditions of the contract are met. We’ll advise the liquidators what premiums are due, and how to recover them efficiently.
Case study: Contingent Premium Recovery
One insolvency practitioner approached us after trying several times to recover a premium relating to a new business that never took off. Reviewing the policies, we found there was a substantial premium due, even considering some ambiguous wording in the contract.
After three months of negotiations with the broker and all 14 insurance companies involved, we secured a return premium from each insurer. Together, their returns added up to a total of over £80,000.
“We had already been advised to effectively write off any insurance recoverable. Flag Partners took the problem away from us and secured a settlement beyond our expectations. We were kept regularly informed of the progress and were consulted before any final settlement was agreed. Flag Partners are a professional organisation that I would recommend to any liquidators or administrators seeking insurance recoveries”.
Insurance Claims Recovery
When companies fail, there are often insurance claims outstanding that need to be recovered. Insurance companies are often reluctant to pay these claims, as they know the company is in financial difficulty and won’t produce any future income for them. Insurers also tend to assume they won’t be pursued for these claims, and close their files after a certain period.
However, these insurance claims are still due and the insurance companies are no different from any other debtor to the company. We work with the insurance companies, brokers and loss adjusters to provide the information and documentation required to achieve the best possible recovery against these claims.
Case study: Property Claim Recovery
In liquidation insurance recovery, even what seems like a lost cause may be won in the end. In 2010, we were asked to look at a claim that had been denied by insurers in 2009.
The claims related to an earlier fire, and covered Property, Contractors Plant, Motor, Business Interruption and Loss of Profit contracts. Various records had been lost in the fire, and a number of assets were unaccounted for. It was also a year since the claim had been denied, and the company was now deep in administration.
All this made the claims recovery process highly complex, but we were confident of achieving a result. We negotiated for nine months with brokers, lawyers, loss adjusters, forensic accountants, leasing companies, property management agents and Police economic crime units. Ultimately, we secured a combined settlement on the administrators’ behalf of £150,000 for the estate.
Case study: Property Bond Recovery
One of our clients was managing a complex insolvency where the company in administration had secured a sub-contract on a major property development project by providing a bond secured by a cash deposit and a mortgage on a number of properties. The principal contractor later terminated the contract, claiming our client had failed to meet the quality standards they had agreed.
By the time we were asked to review the case, the principal contractor had also gone into liquidation, making the process even more complicated.
Nevertheless, we were able to show that the principal contractor had failed to follow the procedures of the Joint Contracts Tribunal (JCT) contract that allowed them to call the bond. As a result, we managed to protect our client’s estate, and have secured agreement for the return of the £80,000 security on the bond.