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Proving Lost Profits In A Subrogation Case: It’s No Easy Matter

December 1, 2013

This article was originally published in the Subrogator, a publication by the National Association of Subrogation Professionals, Winter, 2013. © Copyright 2013 by NASP. All rights reserved. Republished by Butler with permission from NASP.

As subrogation professionals, it is sometimes easy to overly focus on the liability issues in each case, leaving a thorough damages analysis for another day. However, it is a better practice to perform a complete evaluation of the legally recoverable damages early during the subrogation investigation, so that the true value of the claim can be ascertained and relayed to the subrogating insurer. This is especially so in cases where the business interruption portion of the loss is significant, since an error in proper quantification of the recoverable portion of the business interruption loss could dramatically change the overall valuation of a case — both for settlement and trial purposes.

Proving Lost Profits In a Subrogation Case: It’s No Easy Matter