What Is Subrogation?
Subrogation is the substitution of one party into the legal rights of another — most often, an insurer stepping into the shoes of the policyholder it paid, to recover from whoever actually caused the loss. After your insurer pays your claim, subrogation lets the insurer pursue the at-fault party for reimbursement. The goal is to place the loss on the responsible party, not on the insurer or the innocent insured.
How Subrogation Works
- Your insurer pays your covered claim (for example, repairs after an accident)
- The insurer is subrogated to your rights against the person who caused the damage
- The insurer pursues that party and recovers what it paid
Subrogation in Florida
Subrogation appears throughout insurance (auto, property, health) and in suretyship and lending. A key Florida principle is the "made whole" doctrine: in many situations an insurer cannot recover through subrogation until its insured has been fully compensated for the loss. Insurance policies and statutes shape exactly when and how subrogation rights apply, and they affect how settlements are negotiated when an insurer has a recovery interest.
Related Terms
- Indemnification — A related concept of shifting loss
- Damages — What an insurer seeks to recover
- Settlement Agreement — Where subrogation interests are resolved
Barnes Walker
Barnes Walker's attorneys handle insurance, subrogation, and recovery disputes for Florida individuals and businesses. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC