When an insurance claim is paid, subrogation is a potential strategy for an insurer to recover funds from the third party or even multiple parties who actually caused the loss. As most subrogation plaintiffs are insurers, many subrogation plaintiff’s attorneys are also insurance defense lawyers. Both legal specialties can often be found in the same firm. Let National List connect you to the right subrogation or insurance defense firm, worldwide.
The subrogation recovery industry includes multiple lines of business, e.g., auto recovery, fire/property recovery, health and workers’ compensation, etc. Within each of these areas, there is an additional distinction as to whether the loss is insured, partially insured or uninsured. Subrogation is most often used in insurance settings.
Subrogation involves an insurance company seeking reimbursement from the person or entity legally responsible for an accident or loss after the insurer has paid out money on behalf of its insured. This could include any money paid out for property damage, deductible amounts, diminished value, pain and suffering, loss of consortium, etc.
Insurance Defense Litigation
Insurance defense can refer to a situation where an insurer hires counsel to defend its insured against an action brought by a third party—typically an action alleging that the insured has caused the third party to suffer bodily injury or property damage. The parties to the action are typically the insured and the third-party claimant. The legal issues revolve around whether the insured defendant is liable to a third party, and if so, for how much. Insurance defense cases tend to focus on the facts of a particular incident or occurrence.
Insurance litigation involves the legal proceedings and disposition of insurance-related matters. It is primarily composed of disputes between insurers and policy holders. It encompasses everything from asbestos litigation to discrimination in the workplace. Insurance litigation is one of the largest areas of civil practice, not only in the U.S., but arounc the world, and it continues to grow every year.
Despite the name, insurance defense litigation involves very little litigation. The primary goal of insurance defense is to settle every claim for as little as possible before the matter reaches the courthouse. An exceptional insurance defense litigation attorney may actually appear in court only a handful of times throughout his or her career.
Insurance Subrogation can refer to a policy clause that transfers the right of recovery from the policyholder to the insurance company. Occasionally an insurance company will pay a claim when their client is not at fault. The company pays damages for their client and hopes to recoup damages at a later time from the negligent party. The damages can be recovered either from the other party or their insurance carrier. If successful, subrogation will recoup 100 percent of expenses and the client will receive back their deductible.
An example of insurance subrogation is when an insured driver’s car is totaled through the fault of another driver. The insurance carrier reimburses the covered driver under the terms of the policy, and then pursues legal action against the driver at fault. If the carrier is successful, it must divide the amount recovered after expenses proportionately with the insured to repay any deductible paid by the insured.
Subrogation is not only used by auto insurers and policyholders. Another large area of subrogation occurs within the health care sector. If, for another example, a health insurance policyholder is injured in an accident and the insurer pays $50,000 to cover the medical bills, that same health insurance company is allowed to collect $50,000 from the at-fault party to reconcile the payment.
Why Subrogation and Insurance Defense?
Subrogation is beneficial to insurers because any money recovered through the subrogation process goes directly to the insurance company’s bottom line and positively affects company performance. According to a study by Ward Financial Group, a firm that researches property/casualty operations and identifies operational benchmarks that distinguish high performing companies, those that achieved superior operating results subrogated claims at about twice the rate of average companies and recovered substantially higher percentages of their loss payments through subrogation, enabling them to lower premiums for their policyholders. Achieve superior results like these by selecting a qualified subrogation attorney through The National List’s premier attorney referral service.
Without cost, The National List of Attorneys will refer insurers and insureds to qualified subrogation attorneys and insurance defense lawyers. If you want to increase your subrogation actions and recoveries, you can find an attorney on our website or by calling us at 800.227.1675.