Stepping into the Insured’s Shoes

If you were injured due to another party’s negligence, review your insurance coverage even if you plan to sue for damages. If the other party is responsible for your injuries and you expect to win a lawsuit and collect damages, you may still collect on your own insurance policy. For instance, if you were in a car crash where the other party was at fault, your insurer has an obligation to reimburse you based on any coverage you had in place for medical bills and auto repairs. Some policies might have a “right of subrogation” clause, which entitles the insurance provider to recoup some or all of the money that they paid out on your behalf should you later collect a settlement or award from the responsible party.

HINT: A “waiver of subrogation” is an agreement between two parties in which one party agrees to waive subrogation rights against the other party in the event of a loss.