What are "subrogation rights" in the context of workers' compensation?

Subrogation rights refer to the ability of an insurance carrier to seek recovery of costs from a third party who may be responsible for the injury or damages that led to the workers' compensation claim. This means if an employee is injured and receives benefits from their workers' compensation insurance, and it is later determined that someone else is liable for that injury (such as through negligence), the insurance company may pursue that third party to recoup the funds it paid for the employee's medical expenses and related costs.

This concept is important because it helps to hold responsible parties accountable and can reduce the financial burden on the workers' compensation system. By exercising subrogation rights, insurance carriers can help manage costs associated with claims and benefit the overall insurance pool.