Work accidents are an unavoidable part of any company. You can take all the safety precautions necessary to cultivate a safe work environment but disasters occur with no regard to preparation. Injuries can be caused by either the environment (a malfunctioning machine) or derelict employee. Either way, the results will be similar. Lawsuits, lost revenue, big hospital bills all paid for by the company. But things don't need to happen badly. Every company should purchase workman's compensation coverage. Whether you own a large company or just a start-up company and are presently without workers compensation Lithia Springs, GA call a provider today for a free estimate. What are the benefits? First, an workman's comp provider will pick up the cost for any employee accidents so you don't need to. It also compensates the employee for lost hours. Lastly, and possibly most important to the interests of the employer, liability coverage. If the employee refuses benefits and decides to sue the company, they will be unable to take their case to civil court. Considering all of this, every company needs to shop around for the best insurance for their employees and for themselves.

workers compensation Lithia Springs, GA

Subrogation is a term that's well-known in legal and insurance circles but sometimes not by the policyholders who hire them. Even if you've never heard the word before, it is in your benefit to know the steps of the process. The more information you have, the more likely an insurance lawsuit will work out favorably.

An insurance policy you have is a commitment that, if something bad happens to you, the company on the other end of the policy will make good in a timely manner. If you get injured at work, your company's workers compensation insurance pays out for medical services. Employment lawyers handle the details; you just get fixed up.

But since ascertaining who is financially accountable for services or repairs is sometimes a heavily involved affair – and time spent waiting sometimes adds to the damage to the victim – insurance firms in many cases opt to pay up front and figure out the blame after the fact. They then need a way to get back the costs if, when there is time to look at all the facts, they weren't in charge of the payout.

For Example

You rush into the doctor's office with a gouged finger. You hand the receptionist your health insurance card and he takes down your coverage information. You get taken care of and your insurance company is billed for the medical care. But the next morning, when you arrive at your place of employment – where the injury happened – your boss hands you workers compensation paperwork to fill out. Your employer's workers comp policy is in fact responsible for the invoice, not your health insurance policy. It has a vested interest in getting that money back in some way.

How Does Subrogation Work?

This is where subrogation comes in. It is the method that an insurance company uses to claim reimbursement after it has paid for something that should have been paid by some other entity. Some insurance firms have in-house property damage lawyers and personal injury attorneys, or a department dedicated to subrogation; others contract with a law firm. Under ordinary circumstances, only you can sue for damages done to your person or property. But under subrogation law, your insurance company is considered to have some of your rights for having taken care of the damages. It can go after the money originally due to you, because it has covered the amount already.

Why Do I Need to Know This?

For a start, if you have a deductible, it wasn't just your insurance company who had to pay. In a $10,000 accident with a $1,000 deductible, you have a stake in the outcome as well – to be precise, $1,000. If your insurer is lax about bringing subrogation cases to court, it might choose to recover its expenses by ballooning your premiums. On the other hand, if it has a competent legal team and pursues them enthusiastically, it is doing you a favor as well as itself. If all $10,000 is recovered, you will get your full deductible back. If it recovers half (for instance, in a case where you are found one-half accountable), you'll typically get $500 back, based on the laws in most states.

Furthermore, if the total loss of an accident is more than your maximum coverage amount, you could be in for a stiff bill. If your insurance company or its property damage lawyers, such as employment lawyer university place wa, pursue subrogation and succeeds, it will recover your expenses in addition to its own.

All insurance companies are not created equal. When comparing, it's worth looking up the records of competing agencies to determine if they pursue legitimate subrogation claims; if they resolve those claims without delay; if they keep their policyholders advised as the case goes on; and if they then process successfully won reimbursements right away so that you can get your funding back and move on with your life. If, instead, an insurer has a reputation of honoring claims that aren't its responsibility and then covering its profitability by raising your premiums, you should keep looking.

Subrogation is a term that's understood in legal and insurance circles but sometimes not by the customers who employ them. Even if it sounds complicated, it is in your self-interest to know an overview of the process. The more knowledgeable you are about it, the better decisions you can make with regard to your insurance company.

Any insurance policy you own is a promise that, if something bad occurs, the business that covers the policy will make good without unreasonable delay. If your vehicle is hit, insurance adjusters (and the courts, when necessary) determine who was to blame and that person's insurance covers the damages.

But since figuring out who is financially responsible for services or repairs is often a heavily involved affair – and time spent waiting sometimes compounds the damage to the policyholder – insurance companies usually opt to pay up front and assign blame afterward. They then need a path to get back the costs if, when all the facts are laid out, they weren't responsible for the expense.

Let's Look at an Example

You go to the Instacare with a deeply cut finger. You give the nurse your health insurance card and he records your policy details. You get taken care of and your insurance company gets an invoice for the tab. But on the following day, when you arrive at work – where the accident happened – your boss hands you workers compensation paperwork to file. Your workers comp policy is in fact responsible for the hospital visit, not your health insurance company. The latter has an interest in recovering its costs in some way.

How Subrogation Works

This is where subrogation comes in. It is the process that an insurance company uses to claim reimbursement after it has paid for something that should have been paid by some other entity. Some companies have in-house property damage lawyers and personal injury attorneys, or a department dedicated to subrogation; others contract with a law firm. Ordinarily, only you can sue for damages done to your person or property. But under subrogation law, your insurance company is given some of your rights for making good on the damages. It can go after the money originally due to you, because it has covered the amount already.

How Does This Affect Me?

For a start, if you have a deductible, it wasn't just your insurance company that had to pay. In a $10,000 accident with a $1,000 deductible, you have a stake in the outcome as well – namely, $1,000. If your insurer is lax about bringing subrogation cases to court, it might choose to recoup its losses by boosting your premiums. On the other hand, if it has a knowledgeable legal team and goes after them enthusiastically, it is acting both in its own interests and in yours. If all ten grand is recovered, you will get your full deductible back. If it recovers half (for instance, in a case where you are found 50 percent to blame), you'll typically get half your deductible back, based on the laws in most states.

Moreover, if the total loss of an accident is more than your maximum coverage amount, you could be in for a stiff bill. If your insurance company or its property damage lawyers, such as employment law springville ut, successfully press a subrogation case, it will recover your losses as well as its own.

All insurance agencies are not the same. When comparing, it's worth comparing the records of competing firms to evaluate if they pursue legitimate subrogation claims; if they do so with some expediency; if they keep their clients updated as the case continues; and if they then process successfully won reimbursements quickly so that you can get your money back and move on with your life. If, instead, an insurance firm has a reputation of honoring claims that aren't its responsibility and then safeguarding its profit margin by raising your premiums, you'll feel the sting later.