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Workers Comp Subrogation – Risk Management Diary


Risk Management Diary For Workers Comp Subrogation

The Workers Comp Subrogation handlers should have a risk management diary.   A few posts ago I analyzed the Workers Compensation adjuster situation in handling third-party liability claims. In defense of the Workers Comp adjuster, a requirement for the job is NOT a background in liability claims. That is an understood fact.

Graphic Of Risk Management Workers Comp Subrogation Infographic

What can a Risk Manager or company officer do to possibly track the outcomes of an accident where a third party may be liable for reimbursement for all or part of a Workers Comp claim? I would suggest setting up a subrogation diary to track the outcomes of a liability claim against the third party. As I said in the last post, we have noticed in our file performance reviews that subrogation or subro is/has not been properly handled in the claims.

The subro diary can be easily interfaced with any of the diary programs such as Microsoft Outlook(r). The main thing is to track if and when the subrogation claim is being pursued and how the funds have been handled along with how the insurance carrier has reported the reimbursement to the rating bureaus.

Some of the areas to track are:

  1. When did the adjuster send the original notification letter to the responsible party’s insurance carrier? Make sure that letter went out to all responsible parties’ insurance companies.
  2. Did the adjuster for the responsible party acknowledge and respond to the notification letter?
  3. Negotiation status on settling the workers’ compensation lien
  4. Important – Legal proceedings – if a lawsuit filed
  5. Was a subrogation check received by the Workers’ Comp adjuster?  If so, were the funds credited back to the file?
  6. Did the insurance carrier (if not self-insured) report the reserve reduction to the rating bureau?


I recommend not contacting the adjuster for the third party directly.   Let the Workers’ Compensation adjuster do their job. I try not to do very long posts. I will stop there. If you have any more questions on a subro diary, please use the Contact Us page to reach us.

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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