Subrogation is the process by which insurance companies recoup claims paid out when another party is found at fault in an accident. Most of the time, for instance, vehicle owners involved in car crashes contact their insurance company to handle repairs, medical bills, or any other costs tied to the accident. However, if ultimately the other party involved is deemed at fault, the insurance company has the right to claw back any money paid out. Subrogation contributes to insurance companies’ ability to keep premium costs low and remain profitable. However, recovering money already spent is complicated and often results in litigation before the insurer and the insured. Woodall Batchelor PLLC helps clients navigate the waters of subrogation to help protect assets and ensure appropriate compensation. Here are some common pitfalls we’ve seen of the years.
Waiting too long to involve subrogation counsel
Sometime subrogation claims are filed after the statute of limitations on claims has passed. This simple mistake has enormous costs. In general, claims deteriorate with age because dates move farther in the past and records get hazy. Seeking counsel too late in a subrogation claim limits a law firm’s ability to give the best representation possible. Firms can’t properly investigate a claim because there is no time. Evidence is often discarded or destroyed. Witnesses’ recollection of events can change over time as well. It’s important to seek counsel in subrogation litigation as soon as possible to avoid financial losses.
Failure to recognize third-party liability
Many insurance companies have third-party liability provisions included in their insurance policies. These provisions pay out money to the insured to cover costs while the other party’s claim is being processed. The insured money is given with the promise by the insured to pay that money back. However, if claims from the other party are delayed or denied for some reason, then it can be difficult to recoup that money. Engaging legal counsel to help settle those funds is an important step in any subrogation process.
Lack of subrogation investigation
Subrogation claims need thorough investigation work to make a case. In doing so, the carriers must verify that the defendant was negligent, or some sort of product defect caused the incident. They also must prove that the negligence caused the damages the carrier paid, as well as lay out the damages paid. If these carriers are unable to provide evidence and proof of this neglect, it will result in a failed case and ultimately no subrogation recovery. Parties fighting subrogation claims will make serious effort to drill holes in the case. It’s important that prior to any litigation that a thorough investigation occurs. Evidence needs to be as strong as possible heading into court.
Woodall Batchelor PLLC has helped advise and consult on subrogation claims in Texas for years. We’ve made our reputation by conducting expert investigations and solidifying cases for litigation. Get in touch with our firm today to speak about how we can help you avoid common subrogation mistakes. With our help you can make sure your financial interests are protected.