Subrogation clause: Copy, customize, and use instantly
Introduction
A subrogation clause defines the process through which one party, typically an insurer, gains the right to pursue a third party that caused the loss to recover the amount of the claim paid. This clause is critical in contracts related to insurance and indemnity, as it allows the paying party to recoup costs and avoid unjust financial burden. Including a subrogation clause ensures that the party paying for a loss can seek compensation from the responsible party.Below are templates for subrogation clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Subrogation of insurance claims clause
This clause ensures that the insurer’s right to recover from a third party is clearly defined.
The insurer shall be subrogated to all rights of recovery of the insured against any third party who may be liable for the loss for which the claim is made. The insured agrees to assist in the exercise of these rights, and to do nothing to prejudice them.
Subrogation rights clause for indemnity agreements
This clause grants the indemnifying party the right to pursue recovery for any claims paid out.
If [Party 1] pays any indemnity under this Agreement, [Party 1] shall have the right of subrogation to pursue recovery from any third party responsible for the loss or damage, and [Party 2] agrees to cooperate fully in any action taken by [Party 1] for such recovery.
Waiver of subrogation rights clause
This clause waives the right of one party to subrogate, usually to avoid conflicts or maintain certain relationships.
[Party 1] hereby waives any right of subrogation against [Party 2] that would otherwise arise in the event of a claim under this Agreement, to the extent permitted by law, provided that such waiver does not impair the rights of the insurer to pursue recovery against any other party.
Subrogation clause for liability insurance
This clause addresses subrogation in the context of liability coverage under insurance policies.
In the event that [Party 1] is required to make a payment under its liability insurance policy for losses covered by this Agreement, [Party 1] is granted the right of subrogation to seek compensation from any third party deemed liable for the covered loss.
Subrogation of claim recovery rights clause
This clause assigns the right to recover paid claims from a responsible third party to the insurer or indemnifying party.
Upon payment of any claim under this Agreement, the paying party shall have full rights of subrogation to recover from any third party responsible for the loss or damage that led to the claim, including the right to pursue legal action on behalf of the affected party.
Subrogation clause for third-party claims
This clause is used to clarify the rights of the payer to recover from third parties in case of third-party involvement.
If any loss or damage covered by this Agreement is caused by a third party, [Party 1] shall have the right to subrogation and shall be entitled to recover any amounts paid from that third party, including all associated legal fees and expenses.
Contractual subrogation clause
This clause governs the specific subrogation rights in a contractual context.
[Party 1] agrees that, upon payment for a loss under this Agreement, it shall be subrogated to any rights that [Party 2] may have against any third party, and shall have the right to pursue such rights at its discretion, including through legal action.
Mutual subrogation clause
This clause ensures both parties have the right to pursue subrogation.
In the event that either party makes a payment for a loss under this Agreement, the paying party shall have the right to pursue subrogation from any responsible third party. Both parties agree to cooperate fully in the exercise of these rights, including providing necessary documentation and support for any claims pursued.
Subrogation clause with limitations
This clause limits the ability to subrogate to certain circumstances or conditions.
[Party 1] shall have the right of subrogation for any claims paid under this Agreement, but such rights shall not apply in the event that the loss is caused by [Party 1]’s own negligence, or if such subrogation would be in violation of applicable law or public policy.
Subrogation clause for insurance policies
This clause clarifies the subrogation process when the contract involves insurance policies.
If an insurance policy is involved in the indemnity process under this Agreement, the insurer shall have the right of subrogation to pursue recovery from any third party responsible for the loss. The insured party agrees to cooperate in any efforts to recover the insurance payout.
Subrogation rights clause with insurer involvement
This clause ensures that the insurer has the right to recover from third parties if it has paid the claim.
Upon payment of any covered loss, the insurer shall be subrogated to all rights of recovery that the insured may have against any third party responsible for the loss. The insured shall cooperate with the insurer in pursuing recovery and refrain from taking any actions that would prejudice the insurer’s rights.
Subrogation clause with recovery costs
This clause grants the right to pursue subrogation and includes recovery of related legal costs.
The insurer, having paid any claim under this Agreement, shall have the right of subrogation and may pursue recovery from any third party responsible for the loss, including all costs incurred in the recovery process, such as legal fees, expenses, and interest.
Subrogation clause with notice requirement
This clause requires the paying party to notify the other party about subrogation efforts.
Upon making a payment for a claim, the paying party must notify the other party in writing of its intent to exercise subrogation rights against any third party responsible for the loss, and the other party agrees to cooperate in the recovery process.
Subrogation clause with waiver of rights
This clause waives the right of subrogation for one party, typically in the interest of maintaining good relations.
[Party 1] waives its right of subrogation against [Party 2] to the extent permitted by law. However, such waiver does not prevent [Party 1] from exercising subrogation rights against other third parties involved in the loss.
Subrogation clause with insured's duty to cooperate
This clause imposes a duty on the insured party to cooperate with the insurer in recovering the claim.
The insured agrees to fully cooperate with the insurer in pursuing any subrogation rights that may arise from a loss covered by this Agreement. This includes providing all necessary documentation, attending depositions, and assisting in any legal actions as required by the insurer.
Subrogation clause with claim investigation
This clause grants the right of subrogation and specifies the right to investigate the cause of loss.
Upon payment of a claim, the insurer shall be subrogated to all rights of the insured and may conduct a full investigation of the loss, including seeking recovery from any third party responsible. The insured agrees to provide full access to relevant information for the investigation.
Subrogation clause with legal action
This clause explicitly allows the party making the payment to take legal action to recover from a third party.
The party making payment under this Agreement shall have the right to initiate legal action against any third party responsible for the loss, using the right of subrogation, and may do so without the prior consent of the other party, provided that all recovery proceeds are first applied to reimburse the paying party.
Subrogation clause with settlement of claims
This clause outlines the rights of the insurer to settle claims with a third party.
The insurer shall have the right to settle any claims with third parties responsible for the loss, in full or in part, under its subrogation rights. The insured agrees to refrain from settling claims with such third parties without the prior written consent of the insurer.
Subrogation clause with non-prejudice agreement
This clause ensures that subrogation rights will not prejudice the rights of the insured party.
The exercise of subrogation rights by the insurer shall not prejudice the rights of the insured to recover damages from other third parties, and the insured’s claims against other responsible parties shall remain unaffected by any subrogation efforts initiated by the insurer.
Subrogation clause with limits on recovery
This clause places limitations on the subrogation recovery process.
The right of subrogation shall apply to all claims paid under this Agreement, but the party making the payment shall be limited to recovering only the actual amount of the loss, excluding indirect damages, consequential losses, or any other amounts not directly related to the loss.
Subrogation clause with third-party indemnification
This clause grants the right to pursue subrogation and requires third-party indemnification.
In the event of a claim, the insurer shall be entitled to subrogate against any third party responsible for the loss. If such third party is identified, they will indemnify the insurer for all amounts paid under this Agreement, including related legal costs and expenses.
Subrogation clause with prompt action requirement
This clause requires prompt action for subrogation efforts.
The insured agrees to take prompt action to notify the insurer and pursue subrogation rights against any third party responsible for the loss, including providing full cooperation and ensuring that all relevant information is made available to the insurer within [X] days of the claim payment.
Subrogation clause with indemnity limitation
This clause limits the indemnification in a subrogation scenario.
The indemnification provided under this Agreement for subrogation rights shall be limited to the amount of loss paid by the insurer, excluding any other claims, damages, or liabilities unrelated to the specific loss covered by this Agreement.
Subrogation clause with no impact on insurance coverage
This clause ensures that subrogation rights do not affect the insured’s coverage under the insurance policy.
The exercise of subrogation rights shall not affect the coverage provided to the insured under the applicable insurance policy, nor shall it reduce the insured’s entitlement to coverage for future claims unrelated to the current loss.
Subrogation clause with no waiver of recovery rights
This clause ensures that no waiver of subrogation rights occurs even if the paying party chooses not to pursue recovery.
The fact that [Party 1] may choose not to pursue subrogation for any particular loss shall not be construed as a waiver of [Party 1]’s right to pursue subrogation against third parties for any future claims. [Party 1] retains the right to recover from any third-party responsible for the loss.
Subrogation clause with deductible coverage
This clause specifies the subrogation rights in the context of deductible coverage.
In the event that a claim is paid under this Agreement, [Party 1] shall have the right of subrogation to recover any amounts paid, including the deductible, from any third-party responsible for the loss. The insured party agrees to assist in this recovery process as needed.
Subrogation clause with full recovery rights
This clause asserts the full subrogation rights of the party making the payment.
Upon payment of any claim, [Party 1] shall have full and unrestricted rights of subrogation to recover the full amount of the claim from any third party deemed responsible for the loss, including the right to take legal action on behalf of the affected party.
Subrogation clause with written notification requirement
This clause requires written notification from the paying party to the other party regarding subrogation efforts.
[Party 1] shall notify [Party 2] in writing within [X] days of the payment of any claim and shall inform [Party 2] of its intent to exercise its subrogation rights against any third party responsible for the loss. [Party 2] agrees to fully cooperate in the recovery efforts.
Subrogation clause with claim transfer
This clause allows the transfer of subrogation rights to another party.
[Party 1] shall have the right to transfer its subrogation rights to a third-party insurer or another designated party upon payment of the claim. [Party 2] agrees to cooperate in the transfer of these rights and provide any necessary assistance.
Subrogation clause with cooperation obligation
This clause imposes an obligation to cooperate in subrogation efforts.
[Party 1] agrees to cooperate fully with [Party 2] and its insurer in any efforts to recover damages from third parties responsible for the loss, including providing necessary documents, attending depositions, and assisting with legal proceedings as required.
Subrogation clause with direct pursuit
This clause allows the paying party to pursue recovery directly without additional approvals.
Upon making a payment for a covered claim, [Party 1] shall have the right to directly pursue subrogation against any responsible third party, without the need for further consent or approval from [Party 2], and to recover all amounts paid for the loss.
Subrogation clause with subrogation limits
This clause limits the subrogation rights to certain conditions.
[Party 1]’s subrogation rights are limited to the amount of the loss that has been paid under this Agreement, excluding any indirect, consequential, or punitive damages that may arise from the third party’s actions. [Party 1] agrees to seek only the amount paid for the loss.
Subrogation clause with settlement authority
This clause gives authority to the paying party to settle subrogation claims.
[Party 1] has the right to settle any claims arising from subrogation with third parties, including any settlement agreements, without requiring consent from [Party 2], provided that [Party 2] is kept informed of the progress of such settlement efforts.
Subrogation clause with deductible exclusion
This clause excludes the right to recover deductibles through subrogation.
[Party 1] shall have the right to pursue subrogation for the full amount of the claim paid but shall not be entitled to recover any deductible amounts from the third party responsible for the loss.
Subrogation clause with retention of rights
This clause ensures that subrogation rights are retained regardless of previous actions.
The exercise of subrogation rights by [Party 1] shall not affect any other rights or remedies available under this Agreement or applicable law. [Party 1] retains all rights to pursue recovery from any third party, even if it previously opted not to pursue recovery in other instances.
Subrogation clause with insurance policy involvement
This clause involves an insurance policy in the subrogation process.
In the event of a loss, [Party 1]’s insurer shall be subrogated to all rights of recovery that [Party 2] may have against any third party responsible for the loss. [Party 2] agrees to cooperate in all recovery efforts, including providing necessary documentation to the insurer.
Subrogation clause with dispute resolution
This clause ties subrogation to a specific dispute resolution process.
Any disputes arising from the exercise of subrogation rights shall be resolved through [arbitration/mediation], and the paying party’s right to subrogate shall be upheld throughout the resolution process. All associated legal fees will be borne by the party found to be at fault.
Subrogation clause with third-party indemnity
This clause ensures indemnity from third parties in the subrogation process.
[Party 1] shall be subrogated to all rights of [Party 2] to pursue any responsible third party for the recovery of paid claims. Any amounts recovered by [Party 1] will be used to indemnify [Party 2] for any losses, legal fees, or associated costs incurred during the recovery process.
Subrogation clause with exclusion for gross negligence
This clause excludes subrogation for losses caused by gross negligence.
[Party 1] shall not have the right to subrogate against any third party responsible for the loss if the loss resulted from [Party 1]’s own gross negligence or willful misconduct. The paying party’s rights are limited to circumstances where the loss was caused by a third party’s actions or negligence.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.