We all know that the first step of the claims process is reporting the incident. It is also key in effective subrogation identification and recovery. Subrogation
Often, a subrogation referral isn’t made until the claim is paid and closed, or not referred until the first payment is made. However, getting the subro team involved from the first day can result in quicker and larger recoveries.
Bob Martines, president, and co-founder of Corporate Claims Management (CCM) wrote, "The longer a file remains open, the less likely full recovery will be possible. Thus it is important to begin the process as soon as possible after the accident occurs. Too often, a claim is settled for fewer dollars simply because of a lack of information, or the party making the demand did not know how much recovery was possible. Also, multiple vehicle accidents, where the responsible party has policy limitations, may well reduce your opportunity to collect, if you’re not prompt in submitting a demand. Typically, the third-party insurer will not pro-rate the disbursement without knowledge of all parties involved, a kind of ’first come, first served’ situation.’
Early subrogation involvement will help ensure there is no spoliation of evidence, make sure evidence is preserved, as well as assist in determining if additional experts are needed.