One of the basic principles throughout our legal system (except where modified by legislation) is that a negligent party should bear the costs associated with his or her conduct, when those actions cause injury or damage to another. This principle is commonly enforced by way of a claim of subrogation.

Subrogation, as a legal theory, derives its basis from many different aspects of law. Depending on the circumstances, subrogation may be based on contract, statute or equitable principles. For purposes of workers’ compensation subrogation, the rights of the employer or insurance company are a creature of statute and the courts will look to the statute in ascertaining the extent of the employer/insurance companies’ subrogation rights.

Pursuant to the subrogation doctrine, when an insurer has paid a claimant workers’ compensation benefits due to a loss caused by a third party, the payment of compensation, once accepted by the claimant, can lead to the potential assignment of the cause of action against the third party tortfeasor to the insurance carrier liable for the payment of such compensation.

In handling a subrogation matter, the claims professional must be familiar with many areas of law, including claims arising from premises liability, product liability, negligent motorists and workers’ compensation. Each of these areas can and will impact recovery on both personal lines, as well as commercial liability policies. Our office prides ourselves in the fact that we are experienced in each of these areas of law and can advise the claims professional on the specific effects they can have in the subrogation arena.