Having an insurance policy is critical because it not only protects you legally but financially as well. And the modern consumer has access to various insurance products, including general liability and others that are specific to professionals. Almost every industry has a specialized insurance policy. These products reduce liability and cover the expenses in case of an unexpected incident.
Essentially, modernization has introduced several insurance products, but at least four of them are most prominent. These include homeowner’s insurance, worker’s compensation insurance, auto insurance and healthcare insurance. For an average consumer, it’s relatively simple to file an insurance claim.
Who is a Subrogation Specialist?
A subrogation specialist performs subrogation activities, including identifying and researching the subrogation claims. Actually, if you need help in the recovery of overpayments, for worker’s compensation, duplicate coverage and no-fault claims, a NYC subrogation lawyer can help. Besides, a lawyer can identify legal pursues and liability, settle subrogation collection and negotiate.
Subrogation Explained
Subrogation can be defined as the legal right of an entity or person to take the role of another individual or entity with the aim of seeking monetary or legal compensation from third parties.
The entity that takes up the consumer’s role in subrogation assumes the responsibilities and rights of the original party. Essentially, in practice, subrogation is about the insurance company taking the place of the insured, after which they pursue compensation from a third party that’s at fault.
To better understand subrogation, it’s critical that you first learn the basic structure of an insurance claim. Here’s the hypothetical situation.
Supposing you file an insurance claim following an injury or property damage, your insurance company will complete the investigation and side with you. They’ll then give you a check portraying the damage cost, which will be the end of the matter for the consumer. However, the insurance company is still left with the burden of resolving the subrogation.
Keep in mind that an insurance company not only protects its consumers from legal and financial liability, but they must make sure they have sufficient money to keep the company running. That’s because if all they do is disburse money to consumers automatically upon receiving a claim and at the same time primarily depend on insurance pay-outs to support their operations, they would run out of cash and close down the business. Therefore, an insurance provider must try to recover damages from perpetrators in order to reserve their business. To succeed in their effort to recover the damages from the party/parties at fault, they’ll need the help of a subrogation attorney.
Simply put, subrogation is the heart of the insurance industry. For example, in the US, insurance carriers lost over $15billion in damages for overlooking subrogation. So, a lot of insurance money is left unclaimed, which is the leading downfall of most insurance companies.
Insurance providers must note that settling a consumer claim upfront promotes a good customer experience and is good for business. But then seeking compensation for damages from a third party at fault is an excellent tool for survival. It’s not for consumers to care about subrogation. In fact, some of them do not understand what it’s all about.
Key Takeaway
Subrogation entails protecting consumers concurrently ensuring the insurance company remains solvent. But to achieve that, you’ll need the support of a well-qualified subrogation attorney. These strive to control costs by keeping consumers costs down and protecting the assets of an insurance company. Get in touch with a professional subrogation lawyer today!
