Why a Single-Entity Chain of Custody Can Matter for Property Subrogation

Key Takeaways

Insurance and subrogation professionals will learn:

• What a single-entity chain of custody is and why it can be important when considering property subrogation potential
• Steps for establishing a single-entity chain of custody
• What to look for in an evidence preservation and transportation partner

---

It’s no secret that pursuing property subrogation requires you to be exceptionally intentional. Before you can even begin to prove a manufacturer or installer is responsible for a loss, you need to document and carefully track any evidence you have as it is transported and tested.

One way to help accomplish that is by maintaining a single-entity chain of custody. Find out what this looks like and why it can be beneficial if you’re investigating whether a third party may be accountable for a loss.

What Is a Single-Entity Chain of Custody?

When there might be subrogation potential for an appliance or component, you’ll likely need to have it tested by an expert so that they can determine the cause of failure. This might mean transporting that item to a specialized laboratory to be tested by a licensed engineer.

A chain of custody is the pathway this evidence takes as it is collected, transported, analyzed, and stored. A single-entity chain of custody is one in which the evidence is handled by only one custodian throughout this journey.

Why Does a Single-Entity Chain of Custody Matter for Property Subrogation?

Having a single custodian handle your evidence can be important because relying on multiple entities may leave you open to questions, such as:

• Has the evidence been altered?
• Was it damaged during transit or storage?
• Can the item’s history be verified?

However, by maintaining a single-entity chain of custody and relying on one evidence management partner to document and transport your policyholder’s failed products or components, you create a clear record of the evidence’s path. This can help reduce the legal burden of establishing evidence integrity and minimize chain-of-custody challenges should the claim proceed to litigation or subrogation.

A single-entity chain of custody also means knowing where your evidence will be stored securely beyond testing. With subrogation, you never know how long you’ll need to keep failed products or components on hand, so having a dedicated, safe space to store evidence is paramount.

All evidence is thoroughly documented and photographed upon arrival and during testing at both of Donan’s Component Testing Laboratories (CTL) facilities.

How Can You Keep a Single-Entity Chain of Custody?

Now that it’s clear why a single-entity chain of custody can benefit property subrogation, there are steps you can take to help establish one.

1. Act as Quickly as Possible

Make sure to gather information such as serial and product numbers, take pictures of the failed product if you’re in the field, and speak with the policyholder promptly. Note any information about the failure that may prove important down the line before the evidence is packaged for transport. An evidence preservation partner should also document the evidence here, as well as at every other stage, to reduce the risk of evidence being misplaced, tampered with, or unaccounted for.

Sometimes, you may run into challenges in this initial stage. Scheduling a timely pickup can prove tricky if the policyholder doesn’t understand what subrogation is. Doing your best to communicate subrogation’s benefit for the policyholder can make this first phase run more smoothly.

CTL’s in-house evidence preservation and transportation service, Loss Logistics, carefully photographs evidence to keep a record of its condition and document the chain of custody.

2. Ensure Documentation and Secure Storage Continue

You also can’t forget about the importance of documenting evidence once it has reached each destination. Wherever you entrust your evidence for testing, verify that the provider will photograph and clearly document the failed product upon arrival. These records may prove helpful when evaluating subrogation if testing determines that the failure resulted from an installation error, manufacturing defect, or another cause attributable to a third party.

After testing, you may need to access the evidence again, potentially even months or years after its initial analysis. Knowing and having a clear record of where evidence is being safely stored will help you maintain your single-entity chain of custody, in addition to aiding in preserving the evidence’s integrity.

CTL’s Professional Engineers examine and test all types of appliances and products to determine an accurate cause of failure per the scientific method and empower insurance professionals to make confident decisions regarding property subrogation.

Selecting the Right Evidence Preservation and Transportation Partner

If your evidence is staying with one entity from pickup to storage, it’s important to make sure this custodian is up to the job. They should not only keep a record of evidence but also ensure these items are safe from additional damage.

Employing an expert in evidence management to package larger products can make a big difference. These experts will understand the importance of preserving the evidence. They can use customized packaging and years of experience to safeguard your evidence, whereas some traditional shipping companies don’t always prioritize keeping damaged products safe. They see that the item is already defective, but you know that additional denting, crimping, cracking, or general damage can compromise your evidence.

To mitigate these anxieties, a dedicated partner, such as Donan’s Component Testing Laboratories (CTL), can prove critical. Part of Alpine Intel’s suite of services, CTL’s team understands the need to document and preserve evidence through pickup, shipping, testing, and storage—and can provide documentation to show a single-entity chain of custody.

CTL’s Loss Logistics service works to safely deliver evidence to CTL’s two state-of-the-art facilities so that Professional Engineers can provide thorough, reliable, and top-of-class reports based on the scientific method and engineering principles. These reports include insights you can depend on to make informed subrogation decisions.

Submit an assignment to experience the difference CTL can make when you’re considering property subrogation.

Engineering services are provided by or subcontracted to Donan Engineering, LLC, Donan Engineering NC, PLLC, or Donan Forensic, LP.

Alpine Intel’s content is meant to inform and educate readers using general terms and descriptions. They do not replace expert evaluations that determine facts and details related to each unique claim.