This post will look into thirdparty subrogation under the Pennsylvania Workers' Compensation Act. Subrogation is a way for an insurance company to recoup money that it has paid out in a previous claim.Subrogation is a legal concept that is commonly used in insurance claims. This is an example of how subrogation works: EXAMPLE: John has car insurance with State Farm. Bob rear ends John on the road causing damage to John's car. Since the subrogating insurer always "stands in the shoes of its insured", the General Release also barred Republic's subrogation claim against the contractor. A subrogated insurer may sue in the insurer's own name, or in the name of the insured for the use of the insurer. The insurer will file a workers' compensation lien in the third-party case. Not every law suit involving a work injury creates a right to subrogation, however. The tortfeasor in a subsequent subrogation claim.