Also known as: subrogation meaning · right of subrogation · subrogate
An insurer's right, after paying your claim, to step into your shoes and pursue whoever actually caused the loss to recover what it paid.
Subrogation is the legal right of an insurer, after it pays a claim to its policyholder, to recover that money from the third party who was actually responsible for the loss. For example, if your insurer pays for damage another company caused, it can then sue that company to get its money back. Subrogation keeps the ultimate cost with the at-fault party and can help protect your loss history. In contracts, primes and clients often require a waiver of subrogation, in which your insurer gives up this right against them.
Subrogation is an insurer's right, after it pays your claim, to pursue the party who actually caused the loss and recover what it paid. It shifts the final cost to the at-fault party rather than leaving it with your insurer, and it can help protect your claims history.
A waiver of subrogation is a contract provision (added to your policy by endorsement) in which your insurer agrees not to pursue a specific party, usually a prime contractor or client, even if that party caused a loss your insurer paid. Primes require it so they cannot be chased by your insurance company after a claim.
When your insurer successfully subrogates and recovers what it paid, the claim can effectively be offset on your loss runs, which reduces the long-term premium impact. Waiving subrogation removes that recovery path, which is one reason insurers treat waivers as an underwriting consideration.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.