What Is Subrogation in Workers’ Comp?

Understanding the ins and outs of workers’ compensation insurance is essential for responsible business owners and HR professionals. One concept that often raises questions is subrogation. At Georgia State Auto Insurance, we can help employers understand how subrogation works and assist with managing workers’ compensation policies.

What Is Subrogation in Workers’ Compensation Insurance?

Subrogation involves a legal process that allows an insurance company to recover costs from a third party that may have caused or contributed to a workplace injury. In the context of workers’ compensation, if an employee is injured on the job due to someone else’s negligence, such as a contractor, equipment manufacturer or member of the general public, your insurer may pay the workers’ comp claim and then seek reimbursement from the responsible party.

How Does Subrogation Affect Employers and Employees?

For employers, subrogation can help control workers’ compensation costs. When your insurer successfully recovers funds from another party, it may reduce the overall impact of claims on your policy. Since workers’ compensation insurance premiums are typically influenced by your claims history, having your carrier recoup its own losses may benefit your future costs.

For employees, subrogation generally does not affect their benefits. Injured workers typically receive their medical care and wage replacement as usual. However, if the insurer recovers money from a third party, the employee may be required to repay any duplicate compensation received from both the insurer and the third party.

We’re Here to Help

Our team takes pride in helping local businesses navigate the complexities of workers’ compensation, including subrogation and employers’ liability coverage. If you have questions about your policy or want to reassess your options, contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.