
Guardian in Action
The following
are typical Guardian Group, Inc. assignments:
High Technology
Manufacturing and Electrical Construction
A
surety company provided performance and payment bonds to a $20 million
high technology manufacturer and electrical contractor for delivery
and installation of $15 million worth of product to ten obligees.
When the company began to falter, Guardian Group, Inc. was engaged
to evaluate the principal and suggest a course of action. Just as
we began, the company filed Chapter 11 bankruptcy. Several obligees
had already begun assessing liquidated damages, so we dispatched our
personnel to the principal's location to assume turnkey responsibility
for completing the bonded projects.
New schedules
were developed and takeover agreements entered into with obligees.
We hired former employees from the now bankrupt principal's crew to
complete installation. We re-let jobs to new subcontractors, found
alternate suppliers, and where necessary, used our own personnel to
redesign and manufacture replacement equipment, develop necessary
software and complete the projects. We established disbursement control
account procedures, handled contract funds collection, contract administration,
provided project management services, and evaluated and settled payment
bond claims. Guardian Group, Inc. also provided litigation support
and expert testimony to the surety's in-house and outside legal counsel.
As a result, Guardian Group, Inc. was able to reduce the surety's
claim losses by $8 million.
Surety Company
Divestiture - Underwriting and Claims Run-Off
Subsequent
to an insurance company's divestiture from the surety industry, Guardian
Group, Inc. was engaged to handle all underwriting and claims run-off
on an outsource basis. Guardian Group, Inc. assumed all obligations
and acted as the insurance company's in-house underwriting and claims
departments. Among other tasks, this included developing claims and
underwriting policies and procedures, handling all underwriting renewals,
premium collections, reinsurance reporting, status inquiries, claims
reserving, claims administration, evaluation, negotiation, settlement,
reinsurance billing, hiring and managing outside legal counsel and
other service providers, preparing construction affirmative claims
and performing defensive claims analysis, subrogation and recovery,
litigation support, and fulfilling all reporting requirements to insurance
company management, reinsurers, and the Department of Insurance.
In combination
with performing all underwriting activities, Guardian Group, Inc.
effectively resolved claims that were reserved in excess of $35 million
while collecting $10 million in subrogation. Work was completed in
the claims, underwriting, accounting, and finance departments, on
time and under budget.
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