An insurer’s right to pursue recovery from a responsible third party after paying a claim.

Why it matters

It can affect claims involving another party’s fault.

Example

An insurer may pursue a contractor whose work caused damage.

Common mistake

Assuming subrogation is the same as your deductible being refunded.

Related terms

claim;deductible

Definitions are educational summaries. The policy's definitions and applicable law control a specific claim or coverage question.