What Is a Subrogation Clause in Insurance?

A subrogation clause defines when and how an insurer may use the insured’s rights to recover from a responsible third party after a covered loss. It may also require the insured to preserve evidence, avoid prejudicing recovery, cooperate in a proceeding or assign rights after payment. The exact wording matters because a policy can modify the common-law timing and consequences. The insurer ordinarily proceeds through rights derived from the insured. It remains subject to the defences the third party could have raised against the insured, and recovery is limited by the actual legal claim and the insurer’s contractual interest. The general guide to insurance subrogation claims explains the full recovery process. This page focuses on reading the policy clause itself.