Legally, subrogation is an insurer’s right to pay out a claim and then seek reimbursement from an at-fault third-party responsible for the loss or damage. This right is typically outlined in your insurance contract, forming a fundamental part of the agreement between you and your insurer. . In insurance terms, subrogation is a legal action that an insurance company (the insurance carrier) takes to recoup the funds paid out in a claim from the at-fault party. This allows the insurer to adopt the legal right of the injured party to seek reimbursement, preventing unjust enrichment. November 10, 2023. Subrogation is the process by which your insurance company seeks financial reimbursement for claims it paid out but wasn’t financially responsible for. For example, if you "Subrogation," or "subro" for short, refers to the right your insurance company holds under your policy — after they've paid a covered claim — to request reimbursement from the at-fault party. This reimbursement often comes from the at-fault party's insurance company. This process is called subrogation. Through subrogation, an insurance company can recover money it paid out for insurance claims from the party that caused the injury or damage. Here’s a look at how subrogation clauses work in insurance and what a business owner should know. Editor’s note: Looking for the right liability insurance for your

what is subrogation in insurance