CLAIMS // RECOVERY EXAMPLES // AUSTRALIA
Recovery examples of uninsured losses
Examples of recoveries
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Recovery examples of uninsured losses
At Liberty, we have a dedicated Recoveries team that specialises in handling subrogated recovery actions.
We understand that a targeted approach and expertise in recoveries is essential. Our recovery manager collaborates closely with our claims and underwriting teams to navigate recoveries of varying complexities.
EXAMPLES
Casualty and Property
Global reach. Financial strength. Local authority.
Distinct, complex and constantly evolving – every business is as unique as its insurance needs. To confidently progress in the face of risk and uncertainty requires a level of security you can only achieve through working with specialists.
Liberty Specialty Markets offers a breadth of world-class insurance and reinsurance services to brokers and insured clients. We bring value and solutions to more than 26,000 of Asia Pacific’s most significant business and government organisations – helping protect what they earn, build and own.
We’re part of the global Liberty Mutual Group, a Fortune 100 company that’s been in business since 1912 with a Standard and Poor’s ‘A’ rating.
Jonathan O'Riordan
Claims Recovery Manager Asia Pacific
T: +61 2 8298 5894 M: +61 418 631 880 E: jonathan.o'riordan@libertyglobalgroup.com
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As a qualified lawyer for over 25 years, I use this experience to manage recovery claims for each line of business across the Asia Pacific region.
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If you are looking for more information, please contact Liberty’s Recovery team.
Sydney
Jonathan O'Riordan
Claims Recovery Manager, Asia Pacific
T +61 2 8298 5894 M +61 2 418 631 880
E jonathan.o'riordan@libertyglobalgroup.com
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Liberty is not authorised to provide financial product advice. The information in this document does not take into account your objectives, financial situation or needs.
Always consider the applicable policy wording and other relevant documents before deciding to acquire a financial product.
This document is intended to broadly illustrate the kinds of exposures a business can face in respect of allocation clauses. It is not a comment on insurance coverage available from Liberty. It is intended to provide general information and commentary and should not be relied upon as legal advice. You should not rely on this information without first obtaining professional advice.
Liberty means Liberty Specialty Markets, a trading name of Liberty Mutual Insurance Company, Australia Branch (ABN 61 086 083 605; AFSL No. 530842 (for claims handling and settling services only)) incorporated in Massachusetts, USA (the liability of members is limited); Liberty Specialty Markets Hong Kong Limited (UBI 66395065); Liberty Specialty Markets Singapore Pte Limited (UEN 201538069C); and Liberty Specialty Markets Singapore Pte Limited, Labuan Branch (Company No. LF12903), a licensed insurer under the Labuan Financial Services and Securities Act 2010 (Licence No. IS2016162).
AP0988
Last updated 06/2025
About Liberty Specialty Markets
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Our priority is always our clients’ best interests.
We strive to recover all losses arising from a claim, including both insured and uninsured losses and the client’s excess. Not only do our recovery efforts provide financial benefits through the return of funds, but they also help clients reduce the impact on their claims profile, thereby supporting premium stability.
We have gathered recent examples showcasing the various recoveries undertaken by Liberty's Recoveries team across different segments and insurance products.
Crisis Management
Cyber
Marine
Professional Indemnity
The Insured is a food manufacturer that faced a major setback when a large batch of their product was tainted due to faulty packaging. This necessitated a costly product recall and negatively impacted on their reputation. Liberty assessed the total recoverable losses to be AU$800K. Although our policy only provided limited cover of AU$75K, we took proactive steps by engaging one of our expert panel law firms to handle the recovery litigation for the full amount of the loss on the Insured's behalf at our discounted rates. We also managed the litigation to ensure the process ran smoothly and the best result was obtained. We successfully recovered AU$600K from the Insured’s packaging supplier, which was allocated AU$50K to Liberty and AU$550K to the Insured. The Insured was thrilled with this outcome.
The Insured experienced a cyber incident when their database was compromised due to a cyber attack. Their Cyber policy covered losses, totalling AU$460K. We initiated recovery efforts against the Insured’s IT Provider, whose mishandling of data contributed to the breach. Although the Insured preferred not to participate in the recovery process, they permitted us to pursue claims for both insured and uninsured losses.
We conducted an early informal settlement conference with the IT Provider’s insurer and successfully reached a settlement of AU$765K. This outcome allowed us to recover 100% of Liberty’s losses and an additional AU$305K toward the Insured’s uninsured losses, despite their minimal involvement in the recovery action.
The Insured was highly impressed and very happy with the result.
The Insured is a seafood provider that recently constructed a new facility designed for seafood production, featuring numerous tanks with strict temperature and water quality requirements. After the facility was completed, and just weeks into operation, a substantial quantity of their product was lost due to the tanks not meeting the required specifications. The Insured filed a claim under their Inland Marine insurance policy for loss of product. Liberty worked closely with the Insured to address several issues and approved a settlement of AU$900K. Unfortunately, they also faced significant uninsured losses that were not recoverable under the Inland Marine policy.
Liberty fully financed the recovery action against the facility's builder to recoup both the insured and uninsured losses. We successfully recovered AU$3.75M, which was allocated according to a Subrogation Agreement: AU$1.5M to Liberty (reimbursement of recovery costs of AU$600K plus indemnity payment of AU$900K) and AU$2.25M to the Insured.
The Insured was extremely pleased with this outcome.
The Insured specialises in creating long-span roofing solutions. They initially reported the collapse of a roof structure at a school during a storm, which they chose to repair themselves, deeming it an “uninsured loss.” Three years later, the same roof structure collapsed again due to high winds, prompting the Insured to file a claim for AUD$1.5M. Coverage was granted under the Loss Mitigation extension, and the claim was settled for AU$870K. Liberty fully funded the recovery action against the engineer responsible for the design of the roof, which had failed on two occasions, for both the Insured and Uninsured losses. We successfully recovered AU$1.5M, which was distributed according to a Subrogation Agreement: AU$1M to Liberty (reimbursement of recovery costs of AU$130K plus indemnity payment of AU$870K) and AU$500K to the Insured. The Insured was very pleased with this outcome.
Learn how we helped an Australian crisis management client recover A$750,000 in uninsured losses they incurred after faulty packaging led to a voluntary product recall. The client never expected to recover this loss, and we’re pleased we could demonstrate why we’re an insurance partner, not just an insurance supplier.
The Insured operates a café franchise. During a renovation, the shopfitter accidentally struck a pipe in the floor, leading to damage and flooding to two tenancies. As a result, the centre owner demanded AU$120K from the Insured for repair work. Additionally, the Insured incurred losses of around AU$100K. Liberty provided coverage for both liability and property damage, granting indemnity under both policies. The centre owner’s claim was settled for AU$120K, while the Insured’s property damage claim was resolved for AU$40K. Liberty took the lead in pursuing recovery against the shopfitter, claiming both insured and uninsured losses. Ultimately, we successfully recovered AU$260K, which included a complete reimbursement of all costs, insured losses, the Insured’s excesses, and over AU$60K in uninsured losses. The Insured was extremely pleased with this outcome.
