What does Subrogation mean?

 

Subrogation is when an insurance company will pay out a claim. For instance, if there’s a large fire, the insurance company will pay the first party property owner for the damage that was sustained by the building and then will seek to collect money from the responsible party for that fire. For instance, if a contractor was welding and caused the fire, the insurance company would have the obligation, obviously, to pay the property owner, but then would seek to collect that money from the contractor who caused the fire. Our firm would represent the insurance company in collecting back that money from that responsible contractor.