When one of your employees got hurt on the job, you probably felt nervous about it. A workers’ compensation claim could increase your premiums. A claim when you self-insure could mean direct financial losses.
The injured worker may have assured you that they didn’t want to cause any problems before going to the doctor. They might have declined to file a claim for benefits. Your employee might even have used their own health insurance to cover the cost of care for the injuries they suffered on the job in order to protect you and the company.
Unfortunately, while your employee may have had good intentions, that situation might result in their health insurance provider trying to come after you as a self-insured company or your workers’ compensation insurance provider.
Insurance companies will subrogate claims to the party with liability
Subrogation involves one party seeking financial compensation from another, sometimes on behalf of a third party. A health insurance company going after a business or their workers’ compensation policy for benefits they paid and the co-pay of their policyholder is an example of subrogation.
Provided that an insurance company can show that someone else has liability, they can get back any money that they pay out on a claim. Subrogation takes place with all kinds of insurance, ranging from homeowner’s policies to vehicle liability policies.
Defending your business takes planning
Going up against an insurance provider subrogating a claim can quickly become complex. Reacting quickly and proactively to insurance claims due to a worker’s injury can help minimize the financial impact of such claims on your company. An experienced attorney can help.