What does subrogation mean?
Subrogation is the legal principle by which one party takes on another party’s rights, usually after providing compensation or payment. It is especially important in insurance: if an insurer pays a claim, it may acquire the insured’s right to recover damages from the person or organization responsible for the loss. The insurer then pursues that recovery in its own name, rather than merely benefiting from the insured’s claim. Subrogation prevents the injured party from receiving double compensation and preserves the principle that the responsible party should ultimately bear the loss. The word also has a broader legal meaning involving the substitution of one party for another in the exercise of legal rights. Outside specialist legal contexts, subrogation is relatively uncommon and generally carries a technical, formal connotation.
nounThe legal substitution of one party in the rights and obligations of another, especially the principle by which an insurer or other party who has paid an indemnified loss may acquire the insured’s or injured party’s legal position. The term is most commonly used in insurance, maritime, and general contract law.
- The legal substitution of one party in the rights of another, particularly when an insurer or indemnifying party acquires the position of the person it has compensated.
"After paying the property owner’s claim, the insurer used subrogation to pursue the company responsible for the damage."
"The insurer pursued a claim against the negligent contractor through subrogation."
"In the arbitration, the tenant argued that the landlord’s subrogation agreement did not transfer the relevant rights."
The plural is grammatically standard but uncommon; legal writing generally prefers the singular abstract noun.
"The court considered several subrogations of the insured party’s claims."
An insurer can effectively stand in its insured’s shoes, pursuing the same legal rights after paying a covered loss.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does subrogation come from?
Subrogation comes from Latin subrogare, meaning “to substitute” or “put in place of,” formed from sub- meaning “under” or “in place of” and rogare meaning “to ask” or “to petition.” The word entered English through legal usage and developed in legal traditions concerned with substitution and the transfer of rights. Its cognates include English words based on the same Latin root rogare, such asrogation, arrogation, interrogation, and procurement.
How subrogation is actually used
Subrogation is a formal, specialized legal term, especially common in insurance and maritime law. It is not normally used in everyday conversation, although figurative uses occur in legal and business writing.
Easily confused with subrogation
Substitution generally means replacing one person or thing with another, whereas subrogation specifically refers to a party acquiring another party’s legal rights or position.