Subrogation
An insurer's legal right, after paying a policyholder's claim, to pursue recovery of that payout from a third party who was actually responsible for causing the loss, distinct from a [[concept-waiver-of-subrogation|waiver of subrogation]], the contract clause construction parties use to give up this right against each other in advance.
Why it matters
Whether an insurer can successfully subrogate often depends on evidence gathered during the claim itself, so preserving the actual cause of loss (a failed part, a specific defect) before it's discarded during cleanup can determine whether the insurer ever recovers what it paid out.
On a real project
After paying a claim for water damage caused by a defective water heater, an insurer subrogates against the water heater's manufacturer, recovering its payout based on evidence that the failure was a manufacturing defect rather than normal wear.
Who this matters most to
An Insurance Adjuster evaluates subrogation potential during the initial claim investigation, since it affects how the claim gets handled internally. A Restoration Project Manager preserves physical evidence of the actual cause of loss during emergency mitigation, since that evidence often disappears the moment cleanup begins.
Where this goes wrong
A restoration crew removes and discards a failed water heater during emergency mitigation without documenting or preserving it, focused entirely on stopping further water damage. Later, the insurer wants to pursue subrogation against the manufacturer for a suspected defect, but the physical evidence needed to support that claim is already gone.