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Client Login Why Does Loss of Use (LOU) Matter in Fleet Subrogation Today?
Rising repair costs, increased accident frequency, and insurer resistance are leaving millions in recoverable revenue unclaimed. Traditional recovery processes often miss Loss of Use opportunities — creating significant financial gaps for fleets. This session breaks down where these breakdowns occur and how organizations can close the gap without expanding internal teams.
▶ Download the Presentation to learn how Loss of Use recovery works, where traditional recovery processes often break down, and why many fleets are missing significant recoverable revenue.
📄 Download the TPA Shortfall whitepaper to discover why many third-party administrators fall short when pursuing Loss of Use (LOU) recovery. Written by Sam Fensterstock, SVP of Business Development at Cadex Insurance Recovery, the whitepaper explains how traditional recovery approaches often leave significant dollars unclaimed — and how specialized recovery strategies are helping fleets recover millions in missed revenue.
▶ If your organization is unsure whether it is fully capturing Loss of Use and other recoverable damages, contact the
Cadex Insurance Recovery team to learn how we help fleets identify overlooked claims and maximize recoveries.
Key Takeaways From This Webinar
Why rising fleet costs are exposing major subrogation gaps and why specialists succeed in overturning denials
Where Loss of Use (LOU) and other recoverable damages are commonly missed
How the traditional fleet subrogation process breaks down
Real-world examples of multi-million-dollar fleet recovery cases
SPEAKER
Sam Fensterstock
SVP Business Development at Cadex Insurance Recovery
Download a copy of the presentation
TPA Shortfall: Why Third-Party Administrators Miss the Mark on Loss of Use Recovery
A Cadex Insurance Recovery whitepaper by Sam Fensterstock
Most fleets unknowingly leave significant money uncollected when outsourcing subrogation to TPAs. While 70–80% of Loss of Use (LOU) claims are denied on the first attempt, 90% are actually winnable with the right expertise.
What You Will Learn
- What LOU really is (and how it’s calculated)
- Why TPAs fall short on LOU recovery
- How to audit your current process to uncover unrealized revenue
- Specialists who can unlock hidden revenue
Who Should Read This
- Fleet & Risk managers
- Claims and subrogation leaders
- Organizations relying on TPAs for recovery
- Anyone seeking to maximize subrogation returns
A Cadex Insurance Recovery Whitepaper by Sam Fensterstock
Most fleets unknowingly leave significant money uncollected when outsourcing subrogation to TPAs. While 70–80% of Loss of Use (LOU) claims are denied on the first attempt, 90% are actually winnable with the right expertise.
This whitepaper breaks down why TPAs struggle with LOU recovery, the legal complexities behind it, and how specialized subrogation teams like Cadex consistently overturn denials and capture missed revenue.
Key Insights
What LOU Really Is
Understand LOU as a legally enforceable damage—distinct from lost revenue—based on the rental value of an out-of-service vehicle.Why TPAs Fall Short
High-volume workflows, limited legal expertise, and generic appeals cause TPAs to abandon viable LOU claims.The Denial Problem
Carriers deny 70–80% of LOU claims as a tactic—yet most can be overturned with proper evidence and state-specific knowledge.Legal Complexities That Matter
LOU compensability varies by state, requiring deep case-law familiarity and specialized negotiation strategy.Specialists Unlock Hidden Revenue
Cadex Insurance Recovery uses proven processes, legal expertise, and a contingency-based model to consistently win LOU recoveries.
What You’ll Learn
- How LOU is calculated and enforced
- The systemic carrier strategies behind high denial rates
- Why TPAs often miss or abandon valid claims
- How to audit your TPA to uncover unrealized revenue
- Real-world examples of overturned LOU denials
- How specialized subrogation teams deliver higher recoveries
Who Should Read This
Fleet & Risk managers
Claims and subrogation leaders
Organizations relying on TPAs for recovery
Anyone seeking to maximize subrogation returns
Download a copy of the whitepaper
With its in-house subrogation team at capacity, a large insurer engaged Cadex Insurance Recovery to help with complex case investigation, litigation, arbitration, and closure.
As large carriers face growing caseloads, complex subrogation files often sit unresolved and drive unnecessary cost. In 2014, a national insurer turned to Cadex to augment talent and work
down backlogs and cold files.
What started as ad hoc support on smaller regional claims grew into a steady, nationwide partnership by 2023. Today, Cadex manages some of the insurer’s most complex subrogation files, including arbitration recoveries and vehicle fire losses.
Our persistence and track record have shifted the relationship from transactional overflow support to a strategic partner trusted with high-exposure cases.
Tirelessly Tackling the “Tough” APD Cases and
Getting Difficult Done Down
ABOUT THIS CLIENT
The client is a top 5 North American insurance carrier offering personal and commercial coverage for vehicles, homes, pets, and travel, serving 15 million policyholders, and insuring 24 million vehicles
ENGAGEMENT SUMMARY
Contract Start Date: 2014
Industry: Insurance
Location(s): Primarily US claims, but occasionally Canada and Mexico
Cadex Resources Assigned: 15 “adjusters”, plus specialized arbitration and vehicle fire experts.
SERVICES APPLIED
Insurance Subrogation
- Staff Augmentation
- Auto Physical Damage (APD) Recovery
- Specialized Vehicle Fire Investigation & Loss Recovery
- Nationwide Litigation, Arbitration, & Mediation
The Challenges
The client’s team was facing intense caseload pressure, complex case backlogs, and recovery barriers.
The client prides itself on delivering affordable, reliable coverage through excellent customer service, operational integrity, and a people-first culture. However, rising claim volumes and limited resources were
creating growing challenges. With each adjuster at capacity (if not beyond!), there was little time to pursue adverse carriers, troubleshoot complex files, or follow through on recovery opportunities. Smaller-dollar claims
were pushed aside in favor of larger cases, leaving recoverable dollars abandoned. Knowledge gaps made nuanced cases difficult to close, and process breakdowns, expired statutes, and misapplied payments led to
write-offs, compliance risk, and burnout. In an industry where the path to recovery is full of friction, the client needed a partner to streamline processing and payment across every claim.
Uncover Unclaimed Funds with a No-Cost Audit
CONTINUE READING The Solution
Cadex provides seasoned subrogation specialists who don’t just move files — they close them. We support two national subrogation offices across all 50 states, acting as a seamless extension of the client’s team. With most Cadex professionals bringing 20+ years of experience (vs. the typical 1–2 years for in-house adjusters), we bring deep expertise in legal nuances, vehicle failure patterns, and adverse carrier tactics. Every claim — from a few hundred dollars to high five figures — is worked with rigor and urgency.
Recent results include overturning a $5K offer on a $50K file to recover the full $50K - and reversing a 50/50 liability split in a tractor-trailer wheel loss case to secure 100% and recover $15,898.37.
Overflow APD Claims
Cadex handles large volumes of lower-dollar APD claims such as rear-end collisions, parked vehicle damage, and minor accidents. We focus particularly on stalled files where carriers delay, deny, or don't respond. Our team collaborates directly with client adjusters and seeks approval only when a settlement would fall below 100%.
Because we keep caseloads manageable, we deliver stronger follow-through, cleaner communication, and higher recovery rates.
Vehicle Fire Case Handling
When vehicle fires may involve negligence or manufacturer defects, Cadex determines the cause and pursues recovery wherever merit exists. Each case begins with an expert-led screening that includes insured interviews, vehicle history review, and early assessment of fault potential.
Where justified, Cadex engages fire investigators, electrical engineers, or accident reconstruction specialists to build a defensible case and significantly increase recovery outcomes. The client typically refers to newer, high-value vehicles (often $40K+) where expert costs are warranted.
By eliminating weak cases early, Cadex maximizes efficiency and concentrates effort on files with the strongest recovery potential.
If an adverse carrier fails to pay after losing arbitration or litigation, Cadex steps in to enforce the award. Our subrogation specialists secure payment or escalate to further legal action when necessary.
Arbitration rules require the losing carrier to pay both the award and litigation fees, and Cadex’s compensation comes only from the additional legal cost recovery, ensuring our client keeps 100% of the award. With counsel partners in all 50 states, we navigate jurisdictional variances quickly and enforce payment without delay.
The Results
Cadex fills capacity and process gaps to reduce internal strain and maximize subrogation recoveries.
By leveraging our experienced team and network of specialists, the client has reduced backlogs and workloads, and unraveled upstream issues affecting recovery and cashflow. Continuous account expansion over a decade reflects the value the client sees in Cadex.
Why Cadex?
Better Reach
Better Guidance
Better Tools