ubrogation can have substantial impact on any potential compensation for your personal injury. Subrogation enables your insurance provider (“insurer”) to recoup all money it was forced to pay because of the actions of a third party. Thus, due to subrogation, individuals injured through no fault of their own are oftentimes still required to reimburse their insurer for any medical treatment stemming from these injuries. An insurer can only subrogate if your plan contains provisions/language enabling it do so, but the majority of plans include the right to subrogate.
Imagine this scenario: Suppose another driver runs a red light and your car is totaled. You have insurance on your car, so you call your insurance carrier and they pay you for all of your expenses related to the accident. Your insurance company, realizing that the other driver had an insurance policy, then seeks reimbursement from the at-fault party’s insurance carrier. Your insurer is “subrogated” to the rights of your policy and can “step in your shoes” to recover any amount paid out on your behalf. This is the definition of subrogation.
To recoup their money, your insurer will usually assert a lien against you personally, thereby requiring you to repay them immediately upon receiving any settlement money from the at-fault party. As you can imagine, subrogation can substantially reduce any potential recovery. Making matters worse, many people injured by another’s negligence are blindsided by this financial obligation because they are focused on recovering, overwhelmed by the stress of personal injury or unaware that subrogation even exists. For these reasons, it is important for you to retain a skilled and knowledgeable attorney to protect your rights and to negotiate with your insurer to lower any subrogation lien.
So, why is subrogation becoming so important in the insurance industry and how can it benefit you, the policyholder? Subrogation is important because any monies recovered through the subrogation process go directly to the insurance company’s bottom line. The benefits of subrogation have been demonstrated in company performance. Companies 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. A company with an effective subrogation department can offer lower premiums to their policyholders.
At Woodall Batchelor, we’ve negotiated hundreds of liens on behalf of our clients. We understand the hardships associated with being injured through no fault of your own, and negotiating liens is just one component of the representation we provide to achieve the best possible outcomes for our clients. We also have experience with large loss subrogation. Our attorneys have extensive experience investigating all types of major losses, including fires, turbine losses, structural collapses, refinery losses, equipment and product failures, explosions, chemical spills, rack collapses, mold claims and water damages. Regardless of the size, we leave no stone unturned when investigating a loss. From The Woodlands and across the state of Texas, our experience and relentless investigative techniques have saved our clients money.