Renters' Insurance

[AdamZ]

This is a common misconception regarding subrogation. The insurance company does not have any rights of its own against the third party.

After the insurer pays a claim to its insured (the FBO), it steps into the shoes of its insured. In legal terminology, it becomes "subrogated to" the FBO. It has no greater rights than the FBO against the party that caused the damage.

If the FBO has waived its rights against the party that caused the damage (the Renter), then the insurance company will have no claim against the Renter regardless of what language is contained in the insurance policy.

Yup thats the law here in Pennsylvania.

Correct. But I think most policies contain language that prohibit the insured from waiving their rights to third parties, so that the insurance company can refuse to pay out (or sue to recoup its payout) in the event that the insured violates that term.

Insurance companies are professional gamblers. They do not leave their bets unhedged. If there's a hook somewhere, they work very hard to ensure that someone else is hung on it.

The carrier can claim that you ( the FBO) did not comply with the policey provisions and deny coverage. What is more likely is they will provide a reservation of rights letter give you a defense and if they deny coverage ( different from a defense) then the Courts will decide.

Can you expand a little...
It appears you were working for someone who sent you to a 'chain store' to buy and load cement blocks. Any injury resulting from that duty would be considered workmans compensation from your employer. I don't see how medicare got tied into the payment of the claim...

Oh, I give you several thumbs up, , for resisting in releasing info to some lawyers that will just fuel the fire of a frivilous suit.. I hope you come out ok in this..

Ben.

Ben this is not some plaintiff's PI suit this is an insurance company wanting to recover for their losses. Merely providing information does not mean that the Insurance carrier will sue the store its part of complying with the insurance contract. Remember Insurance for the most part is a contractual agreement between the carrier and insured. The carrier fufills its responsiblity by paying you and you have to fufill yours. If you don't like it then you don't get the insurance. Now the fact that this seems to be a Workers Comp matter may complicate things.