Claims & Disputes

Subrogation

Your insurer's right to recover claim payments from the third party that caused the loss.

Last reviewed: May 2026 · Editorial methodology

Definition

The legal right of an insurance company to pursue a third party that caused an insurance loss to the insured. After paying a claim, your insurer 'steps into your shoes' and sues the at-fault party to recover what it paid out. Subrogation recoveries can sometimes reduce your deductible. You usually waive subrogation rights in commercial leases and certain construction contracts — check with your agent before signing.

Where this term matters

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Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

IndemnityThe principle of restoring an insured to their financial position before a loss — no better, no worse.Proof of Loss (POL)A Proof of Loss is a required claims document—often notarized—that the policyholder submits to provide a formal accounting of their loss, triggering the insurer's obligation to pay or deny.
Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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