What is subrogation?
Subrogation is the carrier's legal right to step into your shoes and pursue the at-fault third party for recovery of what the carrier paid out on your claim. Example: another driver hits your commercial vehicle; your auto policy pays you $30K to repair the truck; your carrier then pursues the at-fault driver's insurer to recover that $30K. Subrogation reduces overall claims costs and helps keep premiums down. As a policyholder, you're typically required to cooperate with subrogation — preserving evidence, providing statements, and not signing anything that would waive subrogation rights without the carrier's consent. Some commercial contracts contain mutual "waiver of subrogation" clauses (especially in construction and leasing), and we review these against your policy's subrogation provisions before you sign.
- Category
- Billing & Claims
- Audience
- All audiences
- Topic
- General
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