My Subro SOS Mini rant for 2024
I try not to rant on mistakes that I see made during our premium, Mod, and clams reviews. My Subro SOS mini rant (please excuse) for 2024 covers subrogation. Yes, good old subrogation gets left behind when we have all became specialists leaving little to no generalists to have input on files.
Why Subro SOS Rant Now?
We usually see one or two mishandling subrogation mistakes per month. Most of the “overlooked money left on the table” can be rectified notifying the possibly responsible third parties by letter, not email, during the Workers comp claim process. I wrote about the subrogation pursual crisis during the pandemic. See the prior link.
Having handled and reviewed thousands of claims, some of the main issues with claims handling seem to fade in and out on a cyclical nature – such as obtaining recorded statements or 24-hour three-point contact.
When The Adjuster Becomes the Claimant
Before the pandemic, complicated subrogation matters were not pursued by adjusters. Now, subrogation of any type, especially auto accident claims can possibly return money to the file without a large amount of effort. Not pursuing the partially/completely responsible third parties may leave a file with more paid than was necessary. A simple letter may get the ball rolling.
Subrogation from an adjusting point of view is defined as substituting in another responsible party in an insurance claim. I will not go into the process as below you will find links to a number of articles that will help avoid my future Subro SOS rants.
Bottom Line
At a minimum, documenting the subrogation investigation answers many questions on any third party involvement. Many times, we see the adjuster check the No Subrogation Involved block. An explanation of why no subrogation will avoid having a Subro SOS on your hands where the adjuster may have to retrace several steps for years in the past.
Remember that the subrogation money does not sit there waiting to be claimed. If the policy has a limit of $30,000 and you come to the table after two years, the third-party policy may have been spent elsewhere. Ok, so end of my Subro SOS rant.
