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Responding to subrogation claim letter
October 27, 2020
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Responding to subrogation claim letter
            We received notice from a subrogation claim; the carrier was scheduling an inspection of a building that burned down.   The insurance carrier exercising their subrogation rights claims that we are a responsible party and liable for the fire loss.  
             We have general liability with E&O coverage.  I reported the claim to our insurance carrier and I have been contacted by a commercial claims adjuster who works for the company that administers claims for our carrier.  The Adjuster reports that the site inspection was completed and the Adjuster thinks there is a strong case for denying liability.   
            We have a signed K&K contract.              
            I was going to call the Adjuster and provide whatever information they needed to deny the claim. I just wanted to run it by you and see if there was anything specific that you wanted me to do other than cooperate. Let me know.
Name withheld
            If I read your email correctly you have done what you are supposed to do, contact your carrier and cooperate with your carrier.  You can let them handle things unless - and until - you realize that they don't really know what they are doing.  If they haven't started by asking for the alarm contract, activity reports and service documents then they are on the wrong path.  If they have, then maybe they are handling the claim properly.  
   You should not be engaging with anyone other than your carrier and its representatives.  Keep your eye out for Reservation of Rights Letter from your carrier or if the claim exceeds your coverage limits, in which event you may have to take a more active role in the defense.
            Some [most] insurance carriers, claim representatives and adjusters are not familiar with the best way to handle a potential claim against an alarm company.  The claims against alarm companies that arise when the alarm, for whatever reason, fails to detect an event it is designed to detect, should not be handled like the typical casualty loss that claim representatives are used to handling.  It’s a problem for you because it shouldn’t be your job to handle the claim; that’s why you carry insurance.  If mishandled and legal fees run up or damages are paid or awarded, it’s you who will suffer increased premiums or risk loss of coverage.  So, yes, it’s your problem.  
            If you have enough clout you can demand that you retain the right to select defense counsel and consulting counsel [which would be me].  Otherwise you can ask the claim rep to bring me in.  Otherwise, ride the defense and hope for the best.

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301