What is a subrogation clause?

A subrogation clause is a section of a contract that allows an insurance company to take up the legal rights of a policy holder if they have paid out a claim. This means that the insurance company can take legal action against the person, company, or organization that caused the harm that resulted in the policyholder’s claim. For example, if the policy holder’s car was damaged due to an accident caused by another driver, the insurance company can seek reimbursement from the other driver under a subrogation clause. This allows the insurance company to recoup some of the money they spent paying out the claim. In Washington, it is important to understand subrogation clauses when signing up for an insurance policy. Insurance companies often include these clauses in their policies and they can limit the policy holder’s rights in a dispute. This is why it’s important to consult an attorney who specializes in insurance law in Washington to make sure you fully understand the subrogation clause in your policy before signing up.

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What is a subrogation clause?

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