What should adjuster do to protect the employer's rights in subrogation?

• A. Preserve the employer's subrogation rights
• B. Waive rights
• C. Ignore rights
• D. File a claim with the court

Answer: (A)

Subrogation is the employer’s right to recover benefits paid from the party responsible for the injury. The adjuster protects the employer’s interests by preserving those subrogation rights. That means not giving up or waiving the right in any settlement or release, and actively pursuing the recovery when a third party is liable.

In practice, preserve means promptly identifying third-party liability, securing all necessary evidence, and filing or pursuing a subrogation claim or lien within any applicable deadlines. It also means coordinating with legal counsel when needed and ensuring that any settlement with the employee or the third party does not extinguish the employer’s right to recover. By maintaining and enforcing the subrogation rights, the employer can recoup paid benefits and discourage careless third parties from creating losses in the first place.