Insurance can be complicate. Claims can get even more complicated. Subrogation is a vital part of the claim process. The experts at Risk & Insurance and Engle Martin & Associates provide this great explanation of what exactly subrogation means:

Getting into the details early is one of the critical success factors for claims professionals in maximizing recovery of funds from a third party via subrogation. 

Subrogation may not be as high profile as risk management or underwriting in the insurance process, but it does fill a specialized - and highly welcomed - role: It recovers funds and helps reduce costs for insureds and carriers, delivering a direct impact on the bottom line in both cases. Subrogation, in fact, is second only to premiums in how insurance carriers bring dollars in the door.

Defined in the context of insurance, subrogation occurs after a claim has been paid and the carrier steps into the shoes of its insured to enforce a claim against a third-party tortfeasor responsible for actually causing or contributing to the loss. The end game is to offset claim losses by recovering funds from the tortfeasor or their carrier. Carriers will then be able to charge a premium commensurate with the risk leading to more accurate underwriting and potentially more competitive premiums.

Engle Martin Claim Administrative Services (EMCAS) - a third party claims administrator and wholly owned subsidiary of Engle Martin & Associates, a national independent adjusting firm - serves as a carrier representative in subrogation scenarios. According to Vivian Conley, Senior Subrogation Specialist at EMCAS, it’s unusual for a TPA to offer subrogation services that parallel the first party claim adjustment. However, EMCAS’ comprehensive approach to claims management includes subrogation as another way to go the extra mile for clients and their insureds.

“From the instant a claim comes in, we dig right into the details,” Conley explained, noting that her subrogation unit applies “tenacious pursuit” strategy to every claim it investigates.

“Even with no liability coverage on the part of the tortfeasor, we wouldn’t automatically close the file,” Conley explained. “We keep investigating because there may be alternative recovery sources.” For example, if someone is driving another owner’s uninsured vehicle and causes a collision and loss to a client’s insured property, the driver of the uninsured vehicle might have their own insurance policy that may provide excess liability coverage. READ MORE...