Subrogation Recovery Calculator

Subrogation recoveries offset claim costs when third parties liable.

Claim paid

Third-party liability %

Success probability %

Legal cost

Net recovery

$310,000

Gross recovery

$600,000

Expected recovery

$360,000

How the math works

Gross = claim × liability %. Expected = gross × probability. Net = expected − legal cost.

$800k × 75% = $600k gross × 60% = $360k expected − $50k = $310k net recovery.

How to Use

Enter claim amount paid.
Enter third-party liability %.
Enter subrogation success probability %.
Enter subrogation legal cost.
Read net recovery.

Frequently Asked Questions

Subrogation scenarios?

Contractor defective work causes damage. Third-party negligence (auto, slip and fall). Product liability (defective equipment). Vendor error. Each scenario: insurance pays claim, then pursues recovery from liable party.

Recovery process?

Insurance pays claim. Carrier reviews liability evidence. Filing against third party (may go to court). Settlement or judgment. Recovery funds split between insured (deductible) and insurer (claim paid).

Success rates?

Clear liability (contractor defect documented): 70-85% recovery. Moderate liability (disputed): 40-60%. Weak liability (uncertain): 10-30%. Legal costs 20-40% of recovery typically. Net recovery 60-80% of gross recovery.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.