TranSubro, is a private equity backed subrogation company that for more than 10 years has helped leading fleet owners recover Loss of Use (LOU) damages. LOU is a state-by[1]state provision, for all non-preventable or no-fault auto/vehicle accidents. Even if a company has been paid property damages (PD) by the at-fault insurance provider, that company is also legally entitled to be compensated if the vehicle involved in an accident has been off the road. This is true even if a spare or replacement vehicle was put into service. In other words, even if a company did not lose revenue or business, the company is still entitled to be compensated for the time the vehicle involved in an accident was out of service being repaired. Also, typically LOU damages are 1 to 2 times the amount of the Property Damages (PD) that were collected. Therefore, LOU damages can be significant money.
Most states have a 2-to-10-year statute of limitations when it comes to LOU. Companies that have not collected LOU on a specific accident can go back 2 to 10 years depending on the state and re-open files where they were paid Property Damages and go after the at-fault insurance provider for LOU damages. One of TranSubro’s clients, who we will refer to as “Bus Co” is a national company that provides transportation services to school districts. Bus Co was reviewing the work of their Third-Party Administrator (TPA) who manages their subrogation / collection process, with the goal of determining how to recover additional LOU damages.
After reviewing their TPA’s LOU collection results, Bus Co was not satisfied. They believed that the recoveries to-date of LOU were insufficient and decided to outsource the collection of LOU claims to a firm that specialized in the collection of LOU damages. Their thinking was that such a move might significantly increase their LOU recoveries. After evaluating their options, they turned to TranSubro. Click here for full White Paper