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Case Study
Multifaceted Transportation Provider
Fortifying the Fleet with “Found Money”
A major transit and shuttle company was satisfied with its post-accident compensation until Cadex identified significant unclaimed amounts.
With rising repair times, parts, labor, and downtime costs, fleet owners lose thousands—even for minor accidents. While auto physical damage (APD) claims are important, pursuing loss of use (LOU) ensures full compensation and vital cash flow.
A diversified bus company had engaged a reputable third-party administrator (TPA) but, after conducting an audit, Cadex uncovered additional recovery opportunities. The TPA’s process was missing key claims.
Cadex audited 10,000 closed claims over three years, identifying over 1,000 viable LOU and APD claims. By challenging denials, resolving documentation gaps, and securing compensation in split-liability cases, Cadex helped the client recoup millions more than expected.
Don’t Let Downtime
Keep Your Business
Down
ABOUT THIS CLIENT
A subsidiary of a UK-based transportation group founded in 1917, this North American client operates in 34 U.S. states and 3 provinces with 20+ subsidiaries. Its school bus division runs 22,500+ buses, serving 550+ districts and 1.3 million students daily. The transit division moves 22 million passengers annually with 2,800 vehicles, while the shuttle service serves 9 million corporate and university passengers.
ENGAGEMENT SUMMARY
Contract Start Date: 2018
Industry: Transit, Shuttle, and Student Transportation Provider
Delivery Location(s): USA
Languages: English
SERVICES APPLIED
- Insurance Subrogation
- Auto Physical Damage
- Loss of Use
The Challenges
The client needed to optimize cash flow and maximize reimbursements from non-fault accidents.
Struggling with profitability and debt, the UK parent company needed to optimize its cash flow while investing in zero-emissions vehicles and restructuring its operations. Recognizing the importance of maximizing recoveries, the client was open to exploring further opportunities for financial improvement. Although the client’s TPA had processed auto physical damage (APD) and loss of use (LOU) claims, they were leaving money uncollected by underestimating LOU amounts. Cadex, noticing discrepancies, offered a no-cost audit to the client’s procurement team to assess if additional recoveries were possible.
After hearing the potential financial benefits, the client gave Cadex limited access to the TPA’s systems. Despite the challenges of working in another company’s systems, Cadex reviewed 1,000 closed claims and discovered enough missed opportunities in LOU and additional auto physical damages (APD) to create a business case. The longstanding TPA wasn’t asking for LOU, and certainly wasn’t pursuing any split-liability compensation. Given that most states have a two- to six-year statute of limitations on claiming LOU and that LOU amounts are 1-2X the amount of the APD, Cadex saw substantial amounts worth pursuing.
Uncover Unclaimed Funds with a No-Cost Audit
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The Solution
Cadex used a multi-prong approach to collect what was owed to the client.
With the average new school bus ranging in price from $110k (diesel) to $250k (electric) and the average transit bus costing between $500k (diesel) to $750k (electric), every dollar recouped in an accident helps the client stay solvent. Cadex offered a variety of services to keep cash flowing and buses moving.
Closed case reviewing and reopening
Cadex specialists audited 10,000 closed accident files going back three years, analyzing repair receipts, police reports, expert testimony, and insurance claims data. This review uncovered over 1,000 viable LOU and APD cases. Top priority cases required detailed LOU calculations, which often face scrutiny due to insurers' tendency to approve lower estimates. Cadex's thorough approach, including using reasonable, evidence-based vehicle rental values, provided strong support for higher claim amounts, even in the face of resistance from at-fault insurers.
Ongoing, new LOU processing
In addition to reviewing closed files, Cadex managed new incoming accident claims. With insurers denying 70-80% of LOU damage claims, Cadex’s process achieves an 80%+ success rate in overturning denials, which boosted the client’s recovery rate.
Additional auto physical damage processing
Cadex specializes in handling claims even when significant time has passed or documentation is incomplete. If clear photos of the damage exist but no formal documentation or estimate is available, Cadex conducts a thorough desk review to reconstruct the claim. Unlike many in-house teams or TPAs that might close such claims due to insufficient support, Cadex leverages a network of experts to build strong, legally viable cases.
Split-liability pursuit
Many TPAs don’t pursue split-liability cases. Cadex, however leaves no stone unturned and will seek compensation even with only a 20-30% split. Used strategically, splitting liability may help avoid lengthy litigation by encouraging settlements and reducing the risk of full liability being placed on a single party.
The Results
ALL possible financial compensation was recovered from at-fault insurers.
By proficiently handling LOU and APD, Cadex enabled the client to focus attention on safety, satisfaction, reliability, modernization, and environmental sustainability while positively affecting the bottom line.
(150%+ of APD
Collected
Total (Over 3 Years)
Inception
Client Each Year
