What is a subrogation clause?

A subrogation clause is a type of clause that is found in an insurance policy. It states that an insurance company is allowed to pursue a third party who is responsible for causing the loss that the insurance company covered. In other words, if an insurance company pays out money to an insured party based on an incident, the company may later pursue legal action against a third-party who caused the incident to recover the money paid to the insured party. In the state of Indiana, a subrogation clause is found in insurance policies which protect individuals and businesses from financial losses. These clauses allow an insurance company to pursue the third-party who caused the damages to recover the money they paid out to the insured party. For example, if a person’s car was damaged in an accident caused by another driver, the person’s insurance company may pay for the repairs to the car. The insurance company would then have the right to pursue the other driver who caused the accident under a subrogation clause in order to recoup the money they paid for the repairs. In Indiana, subrogation clauses allow insurance companies to pursue legal action against third-parties who have caused them to pay out money for damages or losses incurred. This clause protects both insurance companies and those who have suffered financial losses due to situations outside of their control.

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What is a subrogation clause?

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