What are Subrogation Claims?
When a claimant is injured or experiences a loss due to a third party’s negligence, subrogation claims empower insurance carriers to pursue compensation from other responsible parties for money paid out on a claim. Moreover, well-run subrogation claims allow insurance companies to pay claims faster and keep premiums low. Targeted, third-party investigations maximize recovery opportunities and provide critical insights that enhance the efficiency and success of subrogation claims while protecting stakeholders.
Key Benefits of Investigation Services
- Increased Recovery Potential
Specialized investigators excel in identifying all responsible third parties and gathering compelling evidence, significantly improving the likelihood of a successful subrogation claim recovery. In addition, their expertise ensures that no stone is left unturned, helping insurance carriers build stronger cases and recover funds effectively.
- Accurate and Objective Investigations
An unbiased approach is vital for subrogation claims success. Professional investigators deliver fact-based results, free from internal conflicts of interest, ensuring that the findings are credible and support the subrogation efforts with integrity.
- Cost-Effective Outcomes
Investigative services help streamline the subrogation process by uncovering necessary information promptly. Therefore, this reduces the time and expense associated with prolonged litigation, enabling insurance carriers to maximize recovery efforts while minimizing costs.
Essential Elements of Subrogation Investigations
1. Identifying Third-Party Claims
While subrogation is highly beneficial, handling it correctly is essential.
The process requires compliance with legal regulations and close attention to each case’s details. As a first step, it’s important to carefully identify cases involving third parties. An investigative agency can help verify the legitimacy of the claim and identify any fraudulent activity that may complicate the subrogation process. Likewise, it is important for an investigator to know the signs of possible collusion between the claimant and third parties, to ensure the integrity of the subrogation claim.
Injuries caused by the injured party’s own volition or negligence typically don’t fall under subrogation claims.
Common Scenarios Where Subrogation Applies:
- Motor vehicle accidents caused by another driver
- Slip-and-fall incidents due to poorly maintained property
- Injuries from malfunctioning equipment or defective products
2. Gathering Evidence for Liability
In subrogation claims, the insurance carrier needs to establish that a third party’s negligence caused injury or loss. An investigation can –
- Document the factors contributing to the incident, collecting photographs, video evidence, and witness statements.
- Reconstruct the accident to determine how it happened and identify liable parties, providing evidence to build a strong case against the third party.
- Document any environmental or situational factors that contributed to the injury, such as faulty equipment, hazardous conditions, or reckless driving.
Additionally, in some subrogation claims, it can be challenging to locate the third party responsible for the injury or verify their ability to pay. An investigator searches public records to identify and locate the responsible party and their financial status or insurance coverage to determine the likelihood of recovering compensation. This is often done as a standalone Asset Check investigation.
3. Providing Documentation for Legal Proceedings
In cases that escalate to legal disputes, thorough documentation becomes indispensable. Investigators compile detailed reports that summarize findings, provide essential evidence, and offer expert testimony to strengthen the case during court proceedings or negotiations.
Conclusion: Ensuring Fairness and Accountability in Subrogation Claims
Subrogation investigations are not just about recouping costs, they ensure fairness for all stakeholders, from policyholders to insurance companies. By holding negligent third parties accountable, these investigations safeguard insurance funds, prevent fraud, and maintain public trust.
Frasco: The Go-To Resource for Subrogation Investigations
Maximizing recovery opportunities requires meticulous scrutiny and comprehensive exploration, both of which are hallmarks of services like those offered by Frasco Investigative Services. With experienced teams focused on subrogation claims, insurance carriers can navigate the complexities of subrogation with confidence, achieving efficient and equitable outcomes.
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Frasco® Investigative Services delivers ethical and efficient solutions tailored to your needs. Have questions or want to discuss your investigative needs further? Contact one of our experienced experts today to find the answers you’re looking for.
Disclaimer: This blog post is for informational purposes only and should not be considered legal advice. Please consult your general counsel for specific legal guidance. Frasco investigators are licensed, and our operations comply with US industry, federal, state, and local laws.