What must the insured do in accordance with the subrogation clause after a loss?

The subrogation clause is an important element in insurance contracts that allows the insurer to pursue recovery from a third party after paying a claim to the insured. After a loss has occurred, the insured is required to assist the insurer in this recovery process, particularly when the loss was caused by the negligence or wrongdoing of another party. This may involve providing necessary information, documentation, or other forms of support to help the insurer recover the costs from the responsible party.

Assisting in the recovery is crucial because it not only helps the insurer recoup losses but also keeps the insurance system functioning effectively by allocating responsibility to the correct party. When the insured cooperates with the insurer’s efforts to recover damages, it contributes to the overall stability and fairness of the insurance process.