Unlocking Hidden Liability in Subrogation Starts at First Notice of Loss

A recent CLM webinar brought together top legal and insurance minds to spotlight a crucial but often under-leveraged area in claims work: identifying hidden third-party liability early in the claim lifecycle. Subrogation success hinges on recognizing these opportunities promptly, and the panel underscored that this process starts with adjusters in the field.

Speakers stressed that prompt investigations, meticulous documentation, and collaboration with legal and vendor partners are essential. Once evidence or witnesses are lost, recovery prospects shrink—making early action critical. The panel explored multiple scenarios where hidden liability may exist, such as product defects, job site hazards, and medical errors, urging adjusters to view every claim as a potential subrogation case.

Notably, subrogation was framed not only as a recovery mechanism but also as a policyholder benefit. When carriers recover properly, the entire pool benefits through controlled premium growth. For claims professionals, especially adjusters handling auto, property, or liability lines, this session offered both a mindset shift and tactical advice to boost recovery outcomes and overall claim performance.