Subrogation is the legal right for an insurance carrier to recover damages or collect a debt from a third party found responsible for a claim. Subrogation matters because it helps to minimize business costs and lower premiums for the policyholder by recouping money spent on claims.
Through subrogation efforts, the Policy Services Department at ICC impacts all our stakeholders. We continually work toward improving processes that lead to more successful recoveries.
We begin by evaluating all claims thoroughly for recovery potential. After we receive a referral from our Claims Department, we will review the file and all supporting documentation and develop our theory of liability. We will research the adverse individual or business and, if applicable, place them on notice and present damages to them or their insurance carrier. Through the negotiation for settlement, we will rely on outside subrogation counsel or collection vendors to assist with additional investigation, legal support, or collection assistance.
During the research of a claim, the adverse individual or business can be difficult to locate. Sometimes a recent address or phone number can be hard to find. If the claim involved a motor vehicle, we may be able to look up information with the VIN. Phone reverse lookups and social media searches have also been helpful. Once the adverse individual or business is located, we will investigate the collectability by evaluating their assets, bankruptcies, or liens.
Through our research, it is imperative that our team understands state laws that impact recovery. These can include, but are not limited to:
- Statute of Limitations
- Assignment of Claim
- Made Whole Doctrine
- Deductible Reimbursement Laws
- Comparative Fault
If a subrogation recovery is made from an adverse party, we often will reimburse insureds their share of the deductible that is recovered. In 2024, we have reimbursed a collective $30,000 to insureds due to a subrogation recovery on their claim. For more information about insuring your business with ICC, use our Find an Agent search and locate an agent in your area.
