The term “subrogation” often appears when you were injured because of an accident and damages appeared. It basically means that a party or person is standing in place of another party. For instance, when someone was injured and someone else than the person at fault makes the payment for the damages, we are faced with subrogation.
An innocent party, the collateral source, will replace the injured party. The same legal rights of the person who was initially entitled to get benefits apply to the collateral source.
Collateral Sources
Collateral sources are usually private entities, like government agencies or private insurers. They make payments that reach those that have successful personal injury claims and usually a subrogation lawyer is involved.
The idea behind subrogation is that injured parties shouldn’t be allowed to receive double recoveries. Basically, laws exist so that the injured parties receive compensation for incurred damages, without getting profits.
As an example, if an employee ends up injured while at work, it is not only the employer that is responsible for the injury. In workers compensation, this other person is listed as third party.
If the third party exists, the entity with the ultimate compensating responsibility does not change. With subrogation, the employer can participate in lawsuits against third parties or receive compensation together with the injured employee.
To put it as simple as possible, with subrogation, the injured party only receives compensation to cover wage losses and medical expenses. If the third party exists, the money received from it will usually go somewhere else, although a part of it can also go to the injured party.
Settlement And Subrogation
Whenever lawsuit settlements are discussed, it can be very difficult to deal with subrogation issues. Collateral sources and injured parties are allowed to settle claim portions with parties at-fault. The problem is the settlements can affect the right of the insured to receive the legal ongoing benefits or the responsibility of the insurer to make the payments.
One huge problem is that there are different regulations in place in different states in regards to when and how insurers can use subrogation interests. There are also differences in how third-party lawsuit settlements are impacted. As a result, when you were injured and there are different parties that use subrogation rights, it is very important to talk to an attorney that is familiar with the state’s subrogation laws.
Look For A Subrogation Attorney
The most important thing to remember about subrogation action is that it is often used to disorient injured parties. This is definitely not legal but insurers usually have the goal of paying as little as possible. Using subrogation helps the insurer and several other possible entities to pay less while targeting the third party and its actions.
Fortunately, when you work with an experienced subrogation lawyer, the entire process is much easier to navigate. The goal of your lawyer is to protect your interests and give you the right financial compensation. The other parties involved will also get compensated but you will get the amount you are due.