Subrogation
Key Takeaway
The insurer's right to pursue recovery from a third party who caused or contributed to a covered loss after paying the insured's claim. In the law firm context, subrogation might apply when a malpractice claim results from a co-counsel's error or a third-party service provider's negligence that contributed to the underlying loss..
Definition
The insurer's right to pursue recovery from a third party who caused or contributed to a covered loss after paying the insured's claim. In the law firm context, subrogation might apply when a malpractice claim results from a co-counsel's error or a third-party service provider's negligence that contributed to the underlying loss.
Why This Matters for Law Firms
How claims are handled directly impacts your firm financially and reputationally. Understanding the claims process and related terminology helps law firm leadership make informed decisions when a claim or potential claim arises, and ensures you do not inadvertently jeopardize your coverage by failing to comply with policy requirements.
Example Usage in Context
When a partner receives a demand letter from a former client, the firm's risk manager might reference this: "We need to understand the subrogation requirements under our policy before taking any action. Let me contact our carrier and broker immediately."
Related terms
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