Not all states have the same common law rules regarding equitable subrogation, and adjusters must be familiar with how each jurisdiction may apply rights of subrogation under insurance policies. One common law doctrine is that of being certain that the insured is "made whole" before the insurer may keep any of the proceeds from subrogation it has exercised in the insured's name against an adverse party.
 
However, many factors can affect how this doctrine applies. For example, in one Wisconsin case the state Supreme Court found that the insured was not entitled to any of the amounts that the insurer had recovered from a tortfeasor because the insured had already settled with the tortfeasor prior to the subrogation recovery for less than the tortfeasor's policy limits. The case involved a claim against an electrical contractor who was doing renovation to the insured's store when a fire occurred.
 
Knowing when and how to subrogate, and when and under what circumstances the insured may be entitled to part of the recovery, are elements of the adjusting skills necessary in handling either property or liability claims. Many casualty claims contain a basis for equitable subrogation or contribution either against other insurance companies or against tortfeasors and their insurers. It is not only in first-party claims that subrogation must be considered. Many claim experts believe that insurers lose millions of dollars in revenue annually by failure to properly pursue subrogation and contribution.
 
In the courses taught through Crawford & Company Educational Services, subrogation and contribution are basic skills that a student learns. Knowing when and how to pursue an adverse party or insurer and how to collect on judgments, even where there is no insurance, is an element of every coverage course. In all cases, the adjustor must understand the applicable rules and laws of the jurisdiction. For complete course listings, please visit our website.