Wondering about some best practices for that all-important initial inquiry that follows an insurance claim? In the special Subro Live! episode of On Subrogation below, Rathbone Group’s Jason Sullivan and Mike Jacob of Veritas Engineering discuss the claims adjuster’s vital role in the initial investigation phase of a subrogation claim.
In subrogation, the difference between maximum recovery and a missed opportunity often comes down to mistakes (or savvy moves) made in the earliest stages of an insurance claim. Legal strategy and expert analysis play critical roles, of course, but the foundation often starts at the scene. Claim adjusters hold the critical role of gathering evidence and thoroughly documenting an investigation scene, especially to be able to pursue subrogation later on. In many cases – especially in time-sensitive losses, which are typical of property damage subrogation – the adjusters may be the only individuals who ever see the loss site in its /original condition.
A Simple Approach to Documentation in a Subrogation Context
Capturing an adequate amount of evidence does not have to require using a fine-toothed comb and spending hours gathering notes. What is needed is a plan to quickly – yet meticulously – and to document the scene entirely. A solid strategy is to start at one end of the room and capture the entire room every two steps with photographs until you approach where the failure occurred. Document the area where the failure occurred, including any specific marks around the item thought to have caused the loss. Then take a second sweep and look for any odd marks or anything that may otherwise be evidence.
This is essentially two minutes of effort well spent, because what will be valuable evidence to a subrogation expert may seem trivial to the adjuster. Subrogation requires a bit of a different mindset than straightforward evaluating damage and processing insurance claims; it must be focused on identifying and preserving evidence that may establish liability. You cannot take too many photos or videos; even something in the background of a single frame could prove your case for recovery later on.
Full Documentation Eliminates Alternative Cause Defenses
Capturing this evidence can be crucial to avoiding distracting or misleading counter-arguments later on. The goal is to accurately describe the who-what-when-where-why of the environment as best as possible. This will give the experts who study the evidence the highest chance at describing reality, and leaving little to imagination or further question. Being able to accurately describe and recreate the scene later on will help increase the chances of success.
Adjusters can also consider basic tools such as a water pressure gauge – it is simple to carry and operate and can quickly be attached to a hose, washing machine connection, etc. to measure and document water pressure at a loss site. In property damage claims involving water losses, manufacturers and other defendants often argue that excessive water pressure caused the failure, whether or not they have direct evidence. Experts can explain why pressure was not the cause based on visual damage, but a photo of a gauge reading is indisputable.
Practical Benefits of Early Subrogation Investigations
In most cases, straightforward, visual evidence is more efficient and persuasive than technical testimonies. But before the courtroom, extensive, salient documentation benefits experts by providing a clear understanding of the loss, reducing the need for speculation and improving the strength and simplicity of their testimony. For subrogation attorneys, it supports liability arguments and strengthens pre-suit negotiation positions. For subrogating carriers, it increases the likelihood of maximizing recovery while minimizing cost.
Subrogation claims often depend on expert opinions, especially in property and utility cases involving factors such as construction defects, product failures, or complex systems, and experts are only as good as the information they are provided. High-quality documentation allows experts to remotely identify likely failure mechanisms, rule out alternative causes, and provide clearer, more defensible opinions on the stand.
Small Steps Can Make Significant Impacts on Recovery Potential
The key takeaway from Jason and Mike’s discussion is that improving subrogation outcomes does not necessarily require major changes in existing methods – including the time and cost of the investigation process. Instead, it often boils down to small, intentional steps: take too many photographs, capture the full extent of the loss site, use simple tools to document key conditions, and think about how evidence might be leveraged later on in the subrogation process.
These measures require minimal time but have the potential to make or break a case for subrogation recovery. Claim adjusters play a central role in this process. By approaching each new claim with a subrogation-aware mindset and taking those simple steps, they can significantly improve the likelihood of recovery. In a nuanced legal field where details matter, early and thorough documentation is not just an asset – it is essential.
For more information on subrogation law, subjects in insurance litigation, and other important topics for subrogation professionals, visit Rathbone Group’s On Subrogation blog, podcast, and video series. Reach out at blog@rathbonegroup.com with questions and suggestions, or contact us at info@rathbonegroup.com to inquire about our comprehensive, cost-conscious subrogation services.