Insurance Claim Subrogation – How It Helps Get $$$ Back For You

Posted March 13, 2017 by Erin in Transportation | 0 comments

Insurance Claim Subrogation

How It Helps Get $$$ Back For You

Your company driver was recently involved in an accident that wasn’t his fault. You promptly reported the claim to your insurance carrier, and the claim adjuster just paid the repair shop a significant amount to repair your tractor/trailer.   But shouldn’t the other driver that caused the accident (and his insurance carrier) have to reimburse your insurance carrier for what was paid on the claim?  The answer is yes, and the skilled staff in your insurance carrier’s Subrogation Department is there to help with this process.


The term “subrogation” in general terms refers to the process by which a debt is collected from another person or company. A more formal definition is “The substitution of one person or entity for another, especially when the substituted party becomes responsible for a debt or legal claim.”[1] Typically a Subrogation Department does not come into the picture until your insurance carrier has paid your claim.  Common types of claims that are referred to a Subrogation Department include physical damage, cargo, auto accidents, and all types of liability scenarios where another party appears to be at fault based upon the claim investigation.


The Subrogation Department representative assisting you will typically send a demand package to the at-fault driver and/or their insurance carrier. This demand package includes documentation obtained during the claim investigation which confirms who is responsible for the accident (example: police report), details regarding how much was paid on the claim, and a request for prompt payment.  Expenses that can be part of a demand include: deductible amount, lost downtime or rental expense, medical bills, hotel bills, and other out-of-pocket expenses incurred due to the accident.


Every year insurance carrier Subrogation Departments recover hundreds of thousands of dollars on behalf of their insureds. The money recovered is credited to the corresponding claim files, helping put their insureds back in a pre-accident financial condition.  If you should have any questions about the Subrogation process, please contact your insurance carrier, your assigned claim adjuster, or Cline Wood Agency at 888-451-3900.

[1] Source: “subrogation.” 2003-2017. (14 Feb. 2017)

This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Marsh & McLennan Agency LLC shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting or legal matters are based solely on our experience as consultants and are not to be relied upon as actuarial, accounting, tax or legal advice, for which you should consult your own professional advisors. Any modeling analytics or projections are subject to inherent uncertainty and the analysis could be materially affective if any underlying assumptions, conditions, information or factors are inaccurate or incomplete or should change.


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