December 15, 2022 | Legal Alerts
The Facts About Waiver of Subrogation Clauses
Subrogation allows an insurer to step into the shoes of the policyholder and file a claim against a third party who caused the damage. The theory behind a subrogation clause is that the insurance company should not have to bear the loss when someone else was to blame for the damages. Once the insurance company has paid the claim to the policyholder, it may look to see whether it can take legal action against another party to recover its losses. These claims are an important tool for an insurance company to help minimize its own losses and manage its risk.