What is a subrogation clause?

A subrogation clause is a type of insurance law that is common in Minnesota. It is designed to protect an insurer when it pays out a claim on behalf of an insured party. The clause states that the insurer can take action against another party if that party was liable for the damages. In other words, it allows the insurer to “stand in the shoes” of the insured party and take action against the responsible party. For example, suppose an insured person is in an auto accident caused by another driver. The insurer may pay out a claim on behalf of the insured person for medical bills, lost wages, and other damages resulting from the accident. The subrogation clause would then allow the insurer to go after the other driver’s insurance company to recoup those damages. Most insurance policies in Minnesota have a subrogation clause. It is important that all insured parties understand this clause and the legal implications it can have. By understanding the clause, insured parties can protect their rights and ensure that they get the compensation they are rightfully owed.

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What is a subrogation clause?

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