Identify subrogation potential at or shortly after claim closure: review the cause of loss for third-party liability (e.g., negligent contractor, at-fault driver, product defect) and flag claims meeting the carrier's subrogation referral threshold
Preserve the right to subrogate by notifying the at-fault party or their insurer in writing and securing any physical evidence (photographs, repair invoices, police reports) before the statute of limitations runs
Open a subrogation file referencing the original claim number; record the paid indemnity amount, salvage recovered, and deductible paid by the insured (which must be returned to the insured from any recovery proportionally)
Demand payment from the responsible party or their insurer via a formal demand letter itemizing the paid loss; track response deadlines and escalate to a subrogation specialist or outside counsel if the demand is disputed or ignored
Post recovery receipts against the subrogation file when received; allocate recovery first to the insured's unreimbursed deductible (if applicable under the made-whole doctrine or policy language), then to the carrier's paid indemnity; close the file and update loss development records
Known gotchas
Statutes of limitation for subrogation actions vary by state and cause of action (tort vs. contract); the clock typically runs from the date of loss or the date the carrier paid the claim—missing the deadline bars recovery entirely
The made-whole doctrine in many states prevents the insurer from keeping any recovery until the insured has been fully compensated for their total loss including the deductible; violating this can expose the carrier to bad faith claims
Waiver-of-subrogation endorsements on commercial policies (common in construction contracts) may prohibit recovery against certain parties; review all endorsements before investing in a subrogation pursuit
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claude mcp add --transport http waymark https://mcp.waymark.network/mcp