Subrogation Against Utilities: Standards of Care, Theories of Liability, Defenses, Working With Insureds and Experts

This CLE webinar will discuss subrogation of property damage and personal injury losses involving utilities.

Subrogation against utilities is so profitable that, recently, hedge funds, private equity, and other types of investments have been gobbling up wildfire subrogation claims. To curb the practice, a California statute now requires that electric utilities be afforded the right of first refusal to settle subrogation claims tied to wildfires. However, electric utilities may be responsible any time their power lines directly cause or contribute to a loss. Cable, phone, water/sewer, and gas utilities may also be responsible for losses and are potential subrogation defendants.

Done correctly, subrogation offers a way to recover payouts and may be available to more than just traditional insurance companies, such as self-insureds and captives. Utilities may be liable for losses related to fire, floods, ice, and major weather events. Pursuing subrogation claims against utilities requires navigating special standards of care and distinct regulatory frameworks. Issues of liability are often complex, especially if other parties are involved, and require thorough investigation, selecting the proper experts, and properly preserving evidence. The involvement and cooperation of the insured can be vital. 

Listen as our panel of experts offers guidance on subrogation involving utilities with respect to standards of care, regulations, types of claims that can be brought, and proving liability.