Subrogation (often referred to as “subro”) is a legal process that allows you (as the insured) and your insurance company (the insurer) to quickly pay for recovery costs following a covered accident or loss—such as medical expenses, property cleanup and restoration, or automobile repairs—and then recover some or all of those costs from another party (and their insurer—known as a third-party carrier) who was at fault for the accident or loss. In that case, your insurer is said to “subrogate” the other party’s insurer by “stepping into your shoes” and pursuing the claims you have against the party who caused the accident or loss (in whole or in part).

In other words, subrogation refunds you and your insurer for the expenses incurred following a covered accident or loss—including your deductible. Your insurer will probably do most of the work to subrogate against the other party’s insurer, and you, as the insured policyholder of the insurer seeking to subrogate or recover expenses paid, will only need to cooperate by providing information.

Waiver of Subrogation

A waiver of subrogation or subrogation waiver is an agreement that prevents your insurer from acting on your behalf to recover expenses from the party who was at fault for the covered accident or loss.

A waiver of subrogation usually comes into play when the party who was at fault (in whole or in part) for your accident or loss wants to settle your claims against them without involving your insurer. In that case, the at-fault party will usually ask you to release all claims you have against them in exchange for the settlement payment, and to waive any subrogation rights you and your insurer may have.

It is usually a good idea to have a lawyer review any waiver of subrogation agreement or settlement agreement another party asks you to sign following an accident or loss. You should also review your insurance policy to determine whether it allows you to waive your insurer’s subrogation rights.

In Florida, subrogation allows an insurance company to pursue a third party that caused an accident or loss to recover the amount it has paid to the insured. This process helps both the insurer and the insured by reimbursing the costs associated with the loss, including the insured's deductible. The insurer essentially 'steps into the shoes' of the insured to seek recovery from the at-fault party's insurer. The insured is typically required to cooperate with their insurer during this process. A waiver of subrogation is an agreement that prevents the insurer from seeking this recovery. Such waivers may be requested by the at-fault party as part of a settlement to prevent the insurer from pursuing them for reimbursement. In Florida, it is important to consult with an attorney before signing a waiver of subrogation, as it can affect the rights of both the insured and the insurer. Additionally, policyholders should review their insurance policies to understand any restrictions or permissions regarding waiving subrogation rights. Florida's specific statutes and case law govern the application of subrogation and the enforceability of waivers, so legal advice is crucial to navigate these issues.