Insurance companies can utilize this letter template to seek reimbursement from the person or entity legally responsible for a loss, after already paying their own insured for the damages.
Letter
Billing & Payments
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8.5x11 Letter: Design PDF (for 6 pages & less)
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What is a Subrogation Letter?
A Subrogation Letter is a formal communication typically sent by an insurance company to recover costs they have paid on behalf of their policyholder. Through subrogation, the insurer seeks reimbursement from the party responsible for causing the damage or loss, such as in a car accident or property damage case.
What should be included in a Subrogation Letter?
A Subrogation Letter should clearly state the facts of the case, including details of the incident (e.g., date, location, and parties involved), the amount of damages paid, and an explanation of why the recipient is responsible for repayment. It should also include a request for payment or negotiation and any relevant supporting documentation, such as repair bills or medical records.
When should my company send a Subrogation Letter?
A Subrogation Letter should be sent after your company has paid a claim on behalf of your policyholder and determined that a third party is responsible for the loss. It's typically sent once the investigation into liability has been completed, but ideally as soon as possible to avoid delays in recovering costs.
What tone should a Subrogation Letter have?
The tone of a Subrogation Letter should be professional, firm, and clear, but not overly aggressive. It should outline the facts and the amount being claimed while remaining open to discussion or negotiation. A respectful tone can facilitate smoother communication and increase the chances of resolving the claim without conflict.
How can my company ensure the success of a subrogation claim?
Success in subrogation often depends on thorough documentation and prompt action. Ensure that you have all necessary evidence, such as accident reports, photos, witness statements, and invoices. Sending the Subrogation Letter soon after the claim is paid, following up regularly, and being open to negotiation can also improve your chances of recovery.
How can we use direct mail to send Subrogation Letters effectively?
Direct mail can be an effective way to send Subrogation Letters as it provides a tangible, formal communication that can capture the recipient’s attention. To use direct mail effectively, ensure that the letter is professionally formatted, includes all necessary documentation, and is sent via a trackable service to confirm delivery. Additionally, following up with a phone call or email can help reinforce your request and keep the process moving forward.
