Here are three scenarios in which the risk manager should identify and pursue subrogation opportunities:
An employee suffers an on-the-job electrocution, due to a defect in a hand tool manufactured by XYZ Corp. The indemnity reserve for lost time is $20,000, and the medical expense reserve is $50,000.
A company salesman is traveling on business. While on a sales call, his company vehicle is rear-ended by another driver. The salesman is uninjured, but the car has $7,500 in damage.
The factory is down for three weeks, due to a fire that started in an adjoining business operated by ABC Upholstery. An ABC employee carelessly left a space heater on overnight, triggering the fire that destroyed ABC and spread to your premises. Your loss of income is $20,000 per week.
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