DEFINITION OF SUBROGATION    An insurance carrier may reserve the "right of subrogation" in the event of a loss. This means that the company may choose to take action to recover the amount of a claim paid to a covered insured if the loss was caused by a third party. After expenses, the amount recovered must be divided proportionately with the insured to cover any deductible for which the insured was reponsible.  (From lcgroup.com)

Now this may mean little to you... but this group, www.subrogation.org, specializes in looking for and finding opportunities to make "subrogation" work.

So as you consider working with or without a General Liability policy to protect your business, or if there is a desire to limit the amount of coverage on a policy to save $20.00 a year, remember this term and consider the impact to your credit, equity in your home or other assests. 

Fear mongering? maybe... Just be aware there are groups out there looking to subrogate against the party whose negligence caused a loss.

Matt Locke

www.GeorgiaInvestorInsurance.com

www.MattLockeandAssociates.com