Definition: Subrogation is a legal concept in insurance and contract law, where an insurer has the right to recover from another party in case of a loss or damage caused by the insured. It is similar to subrogation in tort law, which allows a third party to recover damages for injuries sustained by another party. In insurance, it refers to the right of the insurance company to recover the premium paid on an insurance policy from any other party who has incurred liability under that policy. This means that if