Subrogation claims - a QS perspective

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The objective of a subrogation claim is to present a party's losses arising out of an insured event so to achieve success in a recovery action. This report summarises the main topics covered during a 2012  seminar.

John Farrell discussed the issues that can arise on construction projects when sub contractors either want to make an insurance claim or defend a subrogated claim from the project insurers. John stressed the importance of establishing who the policy was intended to cover and described how a sub contractor may become an "Insured" under the policy. John then identified relevant case law to explain how insurers' subrogation rights can be influenced by waiver agreements and the possible effect of the Contracts (Rights of Third Parties) Act 1999.

Danny Large explained how he, as a Quantity Surveyor, would verify a party's claim in order to support a successful recovery action, with reference to specific examples. Danny outlined the various factors that should be taken into account, including the rates to use and what supporting documentation should be obtained.