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ARTICLE · 01 MARCH 2022

Pennsylvania Finds Exception To Anti-Subrogation Rule

Butler Weihmuller Katz Craig LLP
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The Pennsylvania Supreme Court recently adopted the "no-coverage exception" in Arlet v. Workers' Compensation Appeal Board. 2022 WL 529350 (Pa. 2022).

United StatesInsurance
Michael Wolfer
Michael Wolfer
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The Pennsylvania Supreme Court recently adopted the "no-coverage exception" in Arlet v. Workers' Compensation Appeal Board. 2022 WL 529350 (Pa. 2022). As most subrogation professionals are aware, the anti-subrogation rule prohibits insurers from subrogating against their own insureds. The Court in Arlet held that the rule does not apply where the insurer makes payments on a non-covered risk.

Robert Arlet, a shipbuilder employed by the Flagship Niagara League, slipped on an icy sidewalk at work and suffered injuries. Flagship's insurer, Acadia Insurance Company, paid benefits to Mr. Arlet for his injuries under a commercial hull policy. The policy afforded indemnity and protection coverage for "crew members."

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