What is Subrogation?
Subrogation refers to circumstances in which an insurance company tries to recover expenses for an insurance claim it paid when another party was responsible for payment of the insurance claim. Types of subrogation include:
- Indemnity insurer’s rights
- Surety’s rights
- Rights of business creditors
- Lender’s rights
- Banker’s rights
A subrogation clause is a provision in property and liability insurance policies where an insurance company acquires certain rights upon paying an insurance claim of loss under the policy. These rights include the right to take legal action on behalf of the insured party to recover the amount of loss from the party who caused it. It also includes the right to receive full or partial benefits for the insured. The main purpose of the this particular clause is to prevent the insured party from profiting from having an insurance policy.
Private detectives may become involved in such cases when hired by a private party to investigate the details of an accident, for example. Private eyes who specialize in insurance investigations often encounter such cases. If you wish to offer these types of investigation services to your clients, it is wise to educate yourself on the legal matters involved.
Reference Websites for Detectives
- National Association of Subrogation Professionals (NASP) – The NASP is a non-profit trade association established in November 1998 and is is the world’s largest insurance subrogation association and is a leader in subrogation education. The National Association of Subrogation Professional’s mission is to enhance the stature and effectiveness of subrogation and recovery professionals through education, training and the exchange of information.
- Subrolitigators – A state by state listing of subrogation firms. They serve the insurance and collections industries by providing a single location for insurance adjusters and other subrogation professionals to locate experienced subrogation and collection attorneys Nationwide.
- List of Major Insurance Companies – A list of major insurance carriers with links to their corporate website. Useful for conducting insurance research, getting quotes and making comparisons.