Claims blame: quantifying subrogation claims

Subrogation is where one person or entity (usually an insurance company) assumes the legal rights of another person for whom the first entity has paid money on their behalf. So, the insurer who paid out the claim to their insured will subrogate (take legal action) against the entity that actually caused the damage. Tony Levitt , a partner at forensic accountants and consultants, RGL, looks at the issues that should be taken into account when an insurer settles the original insurance claim to increase the prospect of recovery in a subsequent subrogation action against a third party that caused the damage

Claims arise from natural or man-made disasters such as fire, flood, explosion, machinery breakdown, or negligence. These claims are usually indemnified by insurers to restore the company to the same financial position it would have been, but for the damage.