🐵 What Is Subrogation In Insurance

Essentially, subrogation is the insurer's right to recoup its losses after paying a claim. The principle of subrogation serves two main purposes. Firstly, it ensures that the insured doesn't recover more than the actual amount of the loss – either from the insurer, the party at fault, or both. 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. .

what is subrogation in insurance