subrogation
Quick Summary
Subrogation is the act of assuming another's legal right to collect a debt or damages. This often occurs in insurance, where an insurance company, after paying a claim to its policyholder, steps into the policyholder's shoes to pursue recovery from a third party responsible for the loss.12
For example, if a neighbor's negligence causes a fire that damages your house, and your insurance company pays for the repairs, subrogation allows the insurance company to then sue the negligent neighbor in your name to recoup their payout. This principle ensures that the responsible party ultimately bears the cost of the damages, preventing the insured from recovering more than their actual loss.2
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insuranceLimits of liability…element in liability policies is subrogation: the insurer retains the right to bring an action against a liable third party for any loss this third party has caused.
Read More…element in liability policies is subrogation: the insurer retains the right to bring an action against a liable third party for any loss this third party has caused.
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…contracts is the principle of subrogation, under which the insurer may be entitled to recovery from liable third parties. In fire insurance, for example, if a neighbour carelessly sets fire to the insured’s house and the insurance company indemnifies the insured for the loss, the company may then bring a…
Read More…contracts is the principle of subrogation, under which the insurer may be entitled to recovery from liable third parties. In fire insurance, for example, if a neighbour carelessly sets fire to the insured’s house and the insurance company indemnifies the insured for the loss, the company may then bring a…
Read More