Subrogation: Minimizing Damage to your Bottom Line

It was a drunk driver. He sped through a red light and T-boned a limo full of passengers. Miraculously, there were no injuries – except to your bottom line. The long claims process looms before you, ready to eat up your resources, time, and attention, all while your fleet is down a vehicle as the resolution crawls closer at the speed of law.

There’s a better solution: subrogation. Subrogation allows a company to act on your behalf to pursue restitution against the party at fault in an accident. This gives insurance companies the ability to recuperate some of their money during the claims process and, potentially, lessen the deductible that the insured is responsible for.

Some companies specialize in subrogation, and even more specifically, for the chauffeur industry. These companies often work on a commission basis, eliminating the upfront cost. Is it worth it to give up a portion of your claim to a company instead of handling it in-house? Absolutely.

Subrogation specialists are typically well-versed in laws surrounding their particular industry, as well as laws unique to their locale. They seek restitution for physical damage and indirect financial losses sustained as a result of an accident and are often able to secure additional money from claims as old as five years. Even if your insurance offers some kind of subrogation, many insurance companies only care about physical damage, leaving the rest up to you.

Most importantly, perhaps, is the fact that subrogation frees your hands from the process. Specialists have a lot to gain from minimizing the loss to your bottom line, and they know what they’re doing. You’re (probably) not a lawyer, and aside from avoiding the emotional toll of ongoing legal disputes, this keeps you where you need to be: at the helm of your own business.