What is a Subrogation Action?

Have you been in a workplace accident or car accident? If so, you likely visited an urgent care facility or emergency room thereafter. While any medical provider is likely to get patients to fill out forms when they are initially seen, there’s some additional paperwork that they have you complete if you report that you suffered injuries in an accident. Why?

Understanding How Insurance Companies Handle Claims

Insurance companies are for-profit businesses. This means that insurers maintain their eyes on the bottom line. While an insurance company may initially pay on a claim that you file with them, they generally hope that they will be able to recover any funds that they pay out. This is particularly their expectation in accident cases.

How Do Insurance Companies Attempt to Recover Their Expenses?

Insurers may use any additional paperwork from the accident to pursue legal action against a third party, like the defendant. If a product left you injured, then an insurer may look to recover compensation for any costs, such as medical expenses, that they already paid from its manufacturer. Either one of these processes is referred to as subrogation.

How The Subrogation Process Impacts You as the Injured Party

An insurer is referred to as a collateral source. There are statutes in place that allow these entities to recover any expenses they have put out when an injured party recovers compensation in a personal injury lawsuit. This, and other case-related expenses, such as your personal injury lawyer and court fees, could impact how much you end up settling your case for in the end.

A Los Angeles injury lawyer can go into more depth about what subrogation is and how it may impact any settlement you reach in your case.