Fair Share: Understanding Waiver of Subrogation
By Mike Drew, The Reschini Group
Unless you’re a rockface climber, a skydiver, or a firewalker, you probably try to avoid taking on any level of risk that could otherwise be avoided. That goes double for your business, most likely.
Because of this natural and understandable risk-avoidance tendency among business people, the concept of “waiver of subrogation” has become a commonplace element of basic business contractual relationships – yet it can become a confusing notion without the proper explanation. The International Risk Management Institute, on its website*, defines waiver of subrogation as follows:“A waiver of subrogation clause is placed in the professional services contract to minimize lawsuits and claims among the parties. The result is that the risk of loss is agreed among the parties to lie with the insurers, and the cost of the insurance coverage is contractually allocated among the parties as they may agree. The risk, once assigned to the insurers by the parties, is determined to stop there, without allowing the insurer to seek redress from the party ‘at fault.’"At its most basic definition, for example, that means when a general contractor hires a subcontractor, they both sign a waiver of subrogation clause ensuring that – even if employees get hurt or equipment gets damaged in the course of their business relationship – neither side will come after the other for losses. Instead, their insurers take the risk and pay the claims.In the oil and gas industry, in particular, the goal remains minimizing or eliminating risk.Having a clear understanding of how the waiver of subrogation clause may impact your particular business is extremely important. Of course, it is not mandatory that a subcontracting business agree to this clause, but without doing so that business runs a much greater risk – namely, to not get hired at all by the general contractor.The professionals at The Reschini Group are well-versed in the waiver of subrogation topic and how it applies to all types of businesses and contractual agreements. A review by the team at Reschini also includes making sure that your insurance coverage currently in place is, in fact, adequate as well. We stand ready to help you evaluate how all of these factors could affect your enterprise.* https://www.irmi.com/articles/expert-commentary/what-is-subrogation-and-why-is-my-contract-waiving-it
Copyright 2017 The Reschini GroupThe Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm
Focus: Claims Management & Advocacy
Focus: Claims Management & Advocacy
Periodically, The Reschini Group will focus on a particular topic related to Risk Management or Property and Casualty issues. This month, we focus on Claims Management and Advocacy. Read on, and be sure to check out the resources available through the links.
Claims Management and Advocacy: A Game ChangerAs in life, the business world accepts death and taxes as a certainty. But there is a third inevitability that must be added to that list when considering your business insurance program – claims.Insurance brokers will often report claims but provide no management support to maximize the efficacy of insurance dollars, and no advocacy when a carrier denies coverage and/or the defense of a claim. This is the broker who renews your coverage but performs only minimal requirements until the next renewal.At the Reschini Group, our team of professionals brings decades of underwriting, analytics and legal experience in the insurance industry. We report your claims to the appropriate insurance company, proactively manage the data and advocate for you when necessary. This year-round, value-added service provides you with the peace of mind that your insurance carriers will be called upon to meet contractual obligations and abide by legal requirements. The results can have a direct effect on your bottom line and truly can change your game.Our team manages your claims by careful collection and analysis of your loss data. This approach creates an active, functional tool from which we can present options to determine the best program structure for your business. Whether you have a loss-sensitive, high-deductible/self-retention line or first-dollar coverage, our claims team advises you regarding loss history, trends in claim activity, and areas of opportunity for improvement. If a third-party administrator is involved, we provide a second set of eyes and work closely to ensure that quality, up-to-date information is always available. We do this in the usual course of business so you can make the most of the dollars you spend for this important business line item.In terms of advocacy, the Reschini Claims Team reviews and analyzes coverage opinions and reservation of rights letters issued by your carriers. If push back is warranted, and you authorize us to do so, we will attempt to convince the carrier to reconsider and, ultimately, to reverse any adverse decision we feel is not sound. Although we cannot legally represent you, we can parallel our efforts with your attorneys and supply any necessary support in order that your rights are protected at a high level.Effective Claims Management and Advocacy is vital to a successful business. Our dedication to high quality service in this area sets us apart from other brokers.The professionals at The Reschini Group offer client's guidance related to Claims Management and Advocacy. Contact Norman White or Doug Schwab at 724-349-1300 to set up a time to talk.
More About Claims
Read: Fair Share: Understanding Waiver of Subrogation Get: Our Introduction to Claims Management Get: Resource: In the Event of a ClaimGet: Accident Investigations Resource
Copyright 2017 The Reschini GroupThe Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.