Define: Subrogate

Subrogation is the process by which one party, typically an insurance company, steps into the shoes of another party to pursue a claim or right that the original party had against a third party.

Subrogation often arises in the context of insurance claims, where an insurance company pays out a claim to its insured and then seeks to recover that amount from the party responsible for the loss.

While subrogation is most commonly associated with insurance companies, individuals can also subrogate their rights in certain situations, such as when they have been compensated for a loss by a third party and want to pursue that party for reimbursement.

The purpose of subrogation is to prevent the party responsible for a loss from escaping liability by shifting the burden to an innocent party or their insurer.

As an insured individual, subrogation may allow your insurance company to recover the amount it paid out on your claim, which could potentially affect any settlement or judgment you receive from the responsible party.

Subrogation rights can be waived in a contract, so it’s important to review any contracts or insurance policies carefully to understand how subrogation may be affected.

Subrogation involves one party stepping into the shoes of another to pursue a claim, while assignment involves one party transferring its rights to another party.

Subrogation rights may be limited by state laws, insurance policy provisions, or other legal principles, so it’s important to consult with a legal professional to understand the specific limitations that may apply in a given situation.

Subrogation can be contested or challenged in certain circumstances, such as if there are questions about the validity of the subrogating party’s claim or the amount being sought.

To protect yourself from subrogation claims, it’s important to understand your rights and obligations under any relevant contracts or insurance policies, and to seek legal advice if you have concerns about potential subrogation issues.