News & opinion How Can a Subrogation Lawyer Protect You?

How Can a Subrogation Lawyer Protect You?

Houston Subrogation Attorney

Insu

nce exists to p

otect you both leg

lly

nd fin

nci

lly. The

ide

nge of insu

nce p

oducts

v

il

ble to the mode

n consume

—f

om genel li

bility to p

ofession-specific—e too nume

ous to n

me. Ch

nces

e th

t some speci

lized fo

m of insunce policy exists in nely eve

y indust

y. These p

oducts help mitig

te li

bility

nd cove

expenses in the event of

n incident. Despite the ubiquity of insunce in ou

mode

n life, fou

types of insu

nce p

oducts

em

in common

mong consume

s n

tion

ide. They e: homeo

ne

’s insunce,

uto insu

nce,

o

ke

s'[ compens

tion insu

nce,

nd he

lthc

e insu

nce.

Fo

the

ve

ge consume

, <

h

ef="https:

/c

inju

yvictims.combout-insunce-cl

ims/”>filing

n insunce cl

im > is

el

tively simple. P

st

n initi

l investig

tion conducted by

n

djuste

, the end consume

h

s little involvement

ith the insunce comp

ny’s inte

ioo

kings. Most of the he

vy lifting occu

s in the insu

nce comp

ny’s b

ck office.

One such t

sk is the p

ocess of sub

og

tion. Fo

the most pt, it

em

ins s

fely hidden f

om public vie

,

nd yet it is often

necess

y

nd integl step in <

h

ef="https:

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inju

yvictims.com

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vices

insu

nce-comp

ny-cl

ims-

tto

ney-houston/”>the

o

ld of insu

nce cl

ims<>. M

ny insu

nce p

ovide

s employ thei

o

n sub

og

tion speci

lists. Sometimes, ho

eve

, the p

ocess

uns

foul

nd

equi

es

l

ye

’s inte

vention to

esolve. Let’s go into mo

e det

il!

Sub

og

tion Defined<

h2>

h

t does <

h

ef=”https://

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.com/te

ms

s/sub

og

tion.

sp" tget="_bl

nk”

el="nofollo

noopene

">sub

og

tion ent

il, ex

ctly<>? The definition itself is deceptively simple,

t le

st on p

pe

. Sub

og

tion is the leg

l

ight of

pe

son o

entity to step into the

ole of

nothe

pe

son o

entity to seek leg

l o

monety compens

tion f

om

thi

d pty.

ith sub

og

tion, the entity th

t steps into the

ole of the consume

ssumes

ll the

ights

nd

esponsibilities of the o

igin

l p

ty. In p

ctice, sub

og

tion involves the insu

nce comp

ny stepping in fo

the insu

ed, then pu

suing monet

y compens

tion f

om

n

t-f

ult thi

d p

ty.

To p

ope

ly unde

st

nd sub

og

tion, you must fi

st unde

st

nd the <

h

ef="https:

/c

inju

yvictims.com

c

-insu

nce-questions-

ns

e

ed

“>b

sic

n

tomy of

n insu

nce cl

im<>. Let’s look

t

hypothetic

l situ

tion. Im

gine you file

n insunce cl

im fo

d

m

ge you o

you

p

ope

ty h

s sust

ined. You

insu

nce c

ie

, in tu

n, completes its investig

tion

nd sides

ith you. They issue you

check cove

ing the cost of the d

m

ges,

nd th

t

esolves the m

tte

,

ight? It might end the

e fo

the custome

, but the insunce comp

ny still h

s the m

tte

of sub

og

tion to

esolve.

It’s not just the

ole of the insunce c

ie

to p

otect its custome

s f

om fin

nci

l

nd leg

l li

bility; it’s

lso thei

job to

em

in solvent

s

comp

ny. If they

e

e to

utom

tic

lly dispe

se insu

nce p

youts to

ll thei

custome

s

hile depending solely on p

emiums to d

ive thei

ope

tions, they’d soon find themselves out of business! The insu

nce p

ovide

must

ttempt to

ecoup d

m

ges f

om the

t-f

ult pty to

em

in in business. They do this th

ough the use of

sub

og

tion lye

.

Sub

og

tion is the lifeblood of the insu

nce indust

y. Eve

y ye

, insu

nce c

ie

s in the United St

tes le

ve mo

e th

n <

h

ef=”https://insu

n

lytics.

i/insu

nce/p

edicting-sub

og

tion-potenti

l-pitf

lls-pt-1

” t

get=”_bl

nk"

el=”nofollo

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“>$15 billion > in d

m

ges on the t

ble by f

iling to initi

te sub

og

tion.

Fo

ex

mple, it’s estim

ted th

t in c

ses being comp

tive negligence, <

h

ef=”https://

.p

ope

tyc

su

lty360.com

2018/01/18/5-

spects-of-successful-sub

og

tion-p

og

ms/” t

get=”_bl

nk"

el=”nofollo

noopene

“>only 3% > e eve

subject to

sub

og

tion p

oceeding. The

esult?

lot of insu

nce doll

s left uncl

imed. Settling the cl

im upf

ont is ultim

tely

m

tte

of custome

se

vice. Seeking

ecompense f

om

thi

d pty, ho

eve

, is

m

tte

of su

viv

l. Fo

the most pt, the custome

neve

e

lly expe

iences the sub

og

tion p

ocess. Unless they

e

d the sm

ll p

int in thei

insu

nce h

ndbook cefully, they might not even be e of

h

t sub

og

tion ent

ils.

hile it might seem cut

nd d

y on p

pe

, depending on the indust

y involved (fo

ex

mple, he

lthce,

utomotive, o

homeo

ne

s insunce), the

e

lity is slightly mo

e nu

nced.

Sub

og

tion

nd the

uto Insunce Indust

y

The

uto insunce indust

y is usu

lly the most common context in

hich people he

bout sub

og

tion.

lthough sub

og

tion is

much b

o

de

topic,

quick

eb se

ch sho

s it is used most often in <

h

ef="https:

/

.thehtfo

d.com/

p

c

-insu

nce/

uto-sub

og

tion" tget="_bl

nk”

el="nofollo

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">c insunce cl

ims >.

e’ve

l

e

dy

evie

ed the b

sics of sub

og

tion

he

e one p

ty

ssumes the

ights

nd leg

l oblig

tions of

nothe

to pu

sue

nd

ecoup d

m

ges f

om them. This p

ocess is usu

lly the teito

y of

sub

og

tion lye

. Ho

eve

simple the definition

nd p

ocess m

y seem on p

pe

, the

e is

n

dded l

ye

of complexity specific to the

uto insunce indust

y.

The issue

evolves m

inly

ound you

deductible.

hen you

c insunce c

ie

conducts its investig

tion follo

ing

c

ccident, they

ill often

sk you to p

y the deductible befo

e cove

ing the d

m

ges to you

vehicle. Depending on you

c

ie

, geog

phic loc

tion,

nd d

iving histo

y, th

t deductible c

n be

ny

he

e f

om

fe

hund

ed dolls to

fe

thous

nd.

Eithe

y, it’s no sm

ll

mount in el

tive sense.

hile you

insu

nce comp

ny m

y ve

y

ell cove

big pictu

e d

m

ges, o

ing th

t deductible c

n p

oduce

n

ked, vulne

ble feeling

mongst consume

s, especi

lly if the

ccident

sn’t you

f

ult. Sub

og

tion, the

efo

e, is

nothe

y of p

otecting you. Th

ough the p

ocess of sub

og

tion,

sub

og

tion l

ye

c

n pu

sue the cost of the vehicle’s d

m

ge f

om the

t-f

ult p

ty, but they c

n

lso

ttempt to collect the deductible. In c

ses

he

e sub

og

tion succeeds, you’ll get b

ck

h

t you

l

e

dy p

id. Sub

og

tion, ho

eve

, doesn’t

l

ys succeed. It’s

leg

l p

oceeding

fte

ll, so l

ye

s c

nnot

lys gu

ntee success.

Sub

og

tion is

bout p

otecting the custome

hile simult

neously p

otecting the insu

nce comp

ny’s solvency

s

ell. Offe

ing insu

nce c

ie

s the oppo

tunity to eng

ge in sub

og

tion

ith the help of

n expe

ienced,

ell-qu

lified lye

helps to cont

ol costs by keeping the consume

’s p

emium costs do

n,

nd the insunce comp

ny’s

ssets

ell-p

otected.

Sub

og

tion

nd the He

lth Insunce Indust

y

hen it comes to the he

lth insu

nce indust

y, <

h

ef="https:

/

.nolo.com

leg

l-encyclopedi

/unde

st

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son

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el="nofollo

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">sub

og

tion looks slightly diffe

ent > f

om

utomotive sub

og

tion in pctice,

lthough the co

e tenets

em

in int

ct. T

ke the topic of pe

son

l inju

y, fo

ex

mple.

ith

pe

son

l inju

y c

se, the p

ty

ho sust

ined the inju

y files

n insu

nce cl

im

ith thei

c

ie

. Much like

uto insu

nce, the he

lth insunce c

ie

sides

ith the p

tient

fte

cu

so

y investig

tion

nd then dispe

ses funds to cove

thei

client’s d

m

ges. In some c

ses, the insu

nce comp

ny

ill then t

y to collect the compens

tion f

om the

t-f

ult pty.

g

in, this is ve

y simil

to the

y sub

og

tion

o

ks in gene

l. Ho

eve

, the t

get of

he

lthc

e-b

sed sub

og

tion p

ocess c

n be ve

y diffe

ent. The

e

e c

ses in

hich the insu

ed pty does not utilize the coect insunce policy o

p

oduct to cove

thei

expenses. T

ke

hypothetic

l c

ccident fo

ex

mple. Let’s s

y you

e d

iving th

ough

n inte

section

hen

nothe

c

uns the stop sign

nd cshes into you. The

ccident seve

ely d

m

ges you

c

nd c

uses inju

ies th

t

equi

e hospit

liz

tion.

s you begin filing insunce cl

ims in the

fte

m

th, you submit

cl

im to youuto insunce c

ie

fo

the d

m

ges to you

c

nd

cl

im to you

he

lthc

e p

ovide

fo

you

medic

l t

e

tment. Both pties cove

thei

espective cl

ims

nd you, the p

tient

consume

, go on

ith you

life. Ho

eve

, you

he

lthce p

ovide

l

unches

sub

og

tion p

ocess

g

inst you

uto insu

nce c

iefte

the f

ct, unde

the b

sis th

t you

uto policy should’ve cove

ed medic

l expenses

s

ell. He

lthce sub

og

tion often tnscends the boundies of the he

lthc

e indust

y itself.

Othe

Types of Sub

og

tion

hile sub

og

tion mostly occu

s in the he

lthce

nd

uto insunce indust

ies, it

pplies to ide nge of fields. Homeo

ne

s insunce

nd

o

ke

s' compens

tion

e t

o such indust

ies.

Unsu

p

isingly,

homeo

ne

s' insunce sub

og

tion p

oceeding closely m

tches th

t of

utomotive sub

og

tion.

hen p

ope

ty d

m

ges occu

in

home, the insu

nce comp

ny conducts

typic

l investig

tion,

nd then if they side

ith you, they

ill

ele

se funds fo

the d

m

ges

hile pu

suing

eimbu

sement f

om the

t-f

ult pty. The only key diffe

ence he

e is the m

gnitude

t

hich the sub

og

tion p

ocess

ffects the homeo

ne

.

ith <

h

ef="https:

/

.usinsunce

gents.com/

ns

e

ss-

-homeo

ne

-c

n-insunce-sub

og

te-f

om-me/” t

get=”_bl

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el=”nofollo

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“>homeo

ne

s insu

nce >, deductibles c

n be inc

edibly expensive. Even el

tively sm

ll

ep

i

m

y

esult in

deductible of $10,000 o

mo

e. In the c

se of d

m

ges fo

hich the p

ope

ty o

ne

is not

esponsible,

o

king

ith

sub

og

tion lye

is

lifeline. It is the only y to potenti

lly

ecoup

signific

nt

mount of money.

o

ke

s' compens

tion sub

og

tion closely mi

o

s its siste

p

ocess in the he

lthc

e venue. In

o

ke

s’ compens

tion c

se,

sub

og

tion lyeill help the insunce comp

ny go

fte

fin

nci

l compens

tion f

om the

t-f

ult p

ty (usu

lly

n employe

o

the o

ne

of

job site), the

th

n pl

cing the bu

den solely on the insunce comp

ny itself. The

e is little vi

nce in the p

ocess othe

th

n the f

ct th

t lge

sums of money m

y be involved.

The Full V

lue of

Sub

og

tion Lye

Given th

t much of the sub

og

tion p

ocess h

ppens behind the scenes, it is not su

p

ising th

t fe

people h

ve

good ide

of

h

t sub

og

tion

ctu

lly involves. On the su

f

ce, it just seems like

mech

nism th

t helps lge-sc

le insu

nce p

ovide

s collect

eimbu

sement

nd

ecoup thei

losses. Ho

eve

, the full

ole of

sub

og

tion lye

is mo

e complex,

nd much of thei

job de

ls

ith enfo

cing public

nd consume

p

otection. In sho

t, the

ctivities of <

h

ef="https:

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ope

tyc

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lty360.com

2013/11/22/confessions-of-

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og

tion-

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?sl

etu

n=20210529103440″ t

get=”_bl

nk"

el=”nofollo

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“>

sub

og

tion lye

se

ve the g

e

te

public inte

est<>

s

ell

s th

t of m

jo

insunce c

ie

s. The sub

og

tion p

ocess itself is

n integl pt of the insunce indust

y’s business model. It helps to fu

the

sp

e

d —o

even completely mitig

te—the

isk th

t

n insunce comp

ny t

kes on by extending covege. Sub

og

tion is one of the key d

ive

s

esponsible fo

keeping p

emiums in check.

ithout

method to

ecove

d

m

ges o

hold

t-f

ult pties

esponsible, insu

nce p

emiums

ould quickly spi

l out of cont

ol! The ide

of sub

og

tion m

kes the indust

y’s business model mo

e ten

ble.

Beyond th

t, sub

og

tion lye

s c

n

ffect public s

fety on

l

ge sc

le. Th

ough sub

og

tion investig

tions, leg

l p

ofession

ls c

n identify

idesp

e

d p

tte

ns, especi

lly

mong m

joutomotive m

nuf

ctu

e

s,

i

pl

ne m

nuf

ctu

e

s,

nd develope

s. In essence, thei

effo

ts to

ecoup money f

om

thi

d p

ty, specific

lly m

jo

co

po

tions in this c

se, se

ve

s ove

sight into th

t comp

ny’s ope

tion

l pctices.

sub

og

tion p

oceeding

eminds comp

nies th

t someone is

lys tching

nd c

n help b

ing to light c

itic

l issues th

t inte

n

l investig

tion

epo

ts bu

ied.

Hi

ing You

O

n Sub

og

tion L

ye

<

h2>
Sub

og

tion is

n e

of l

th

t the public doesn’t unde

st

nd ve

y

ell.

t its

o

st, it is

mund

ne fo

m of pctice designed to se

ve the insu

nce indust

y.

t its best, it is

y to get you

deductible b

ck. F

om the gene

l public’s point of vie

,

h

t sub

og

tion lye

s do sits in

ve

y g

y

e

. Sub

og

tion is, ho

eve

,

c

itic

l p

t of the insu

nce indust

y’s business model,

nd

nothe

key fo

m of public ove

sight

nd p

otection. Sub

og

tion helps to keep insu

nce p

emiums

ffo

d

ble to the

vege consumehile

esto

ing

sense of justice to the p

ocess. Th

ough sub

og

tion, leg

l p

ofession

ls c

n hold

t-f

ult p

ties

esponsible fo

thei

ctions,

t le

st in

fin

nci

l sense. In ide

sense, sub

og

tion is

n inst

ument of enfo

cement th

t helps keep l

ge-sc

le co

po

tions focused on s

fety th

oughout thei

p

oduction p

ocess. If you find you

self in need of help,

n expe

ienced <

h

ef=”https://c

inju

yvictims.com

“>pe

son

l inju

y

tto

ney<> c

n be

n inv

lu

ble

sset.

e

ch out no

fo f

st, f

ee consult

tion to <

h

ef=”https://c

inju

yvictims.com

se

vices

insu

nce-cl

ims-lye

/”>le

n mo

e

bout the options

v

il

ble to you<

a>.

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