# Subrogation

*Last updated: 2026-06-26*

> Subrogation allows an insurer, having paid a claim, to step into the insured's legal shoes and pursue the party actually responsible for the loss.

Subrogation allows an insurer, having paid a claim, to step into the insured's legal shoes and pursue the party actually responsible for the loss. The principle is simple: whoever caused the damage should bear the cost, not the insurer. In cargo and transport insurance, this mechanism is routinely invoked when a carrier's negligence causes damage and the shipper's insurer picks up the bill – the insurer then seeks reimbursement directly from the carrier. Subrogation rights can be waived or limited by contract; certain bill of lading clauses restrict them, a point freight forwarders and shippers must factor into their cover assessments. Meticulous damage documentation from the moment of discovery underpins any successful subrogation claim.

**Source:** [https://www.investopedia.com/terms/s/subrogation.asp](https://www.investopedia.com/terms/s/subrogation.asp)

## Quick Facts

| Property | Value |
|---|---|
| Term | Subrogation |
| Language | EN |
| Word count | 114 |
| Last updated | 2026-06-26 |
| Source | https://www.investopedia.com/terms/s/subrogation.asp |

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