3rd Party Liability Subrogation

  • 2 min read

In the active Intel investigations, when there’s any type of lawsuit or claim litigation, we always like to recommend that you take a look at potential third-party liability. If your counterparty owes you money or you have a claim against them, looking to see if there’s an opportunity to subrogate against a third party can be very helpful, especially if it’s an internal individual. There may be vicarious liability from an outside party if it’s an outside actor. You want to look to see what contributed to the loss or damage to you or your firm.

Now it was a result of that individual, that person, or that entity. If it’s a public sector budget deficit, you want to look to see if there was oversight that was required that allowed that damage to occur. If there is a third party, it may affect the insurance claim. If you’re the insurer and a third party caused the damage, there may be a subrogation opportunity against that third party that might be good or bad.

If you are the person who caused the damage, then that’s not good for you. Their sources of compensation were, more importantly, sources of restitution. You can deflect criminal liability if the action was the result of an outside party or even an extension of the corporate structure. These third-party aspects: if it’s a company, if it’s a professional company like a law firm, an auditing firm, or even an accountant, they may have insurance policies or ETL policies that can help fund some of the restitution for the claim.

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