Article written by: Ashley Andrews & Danielle Kaminsky

Subrogation is an often overlooked but important part of the insurance claims process. After an insurer pays a covered loss, it may have the legal right to pursue recovery from a third party that caused or contributed to the damage. This process, known as subrogation, can play a meaningful role in protecting a policyholder’s financial interests.

When a third party is responsible for a loss, the insurer can “step into the shoes” of the insured and seek reimbursement from the at-fault party. If successful, subrogation can help offset claim costs and may even result in the recovery of deductibles or other uninsured portions of the loss.

For policyholders, this means:

• Potential reimbursement of deductibles

• Possible recovery of losses not fully covered by insurance

• Long-term premium stability through reduced overall claim costs

Subrogation typically involves an investigation into the cause of loss, payment of the covered claim, and a recovery effort against the responsible party. Policyholders are generally required to cooperate in this process to preserve recovery rights.

To better understand how subrogation works and how it can benefit your organization, read the full article on the Howden website: