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