Subrogation is an arrangement between insurance companies to prevent insured parties from receiving double compensation. The subrogation process is the right of an insurance company to recover the amount it has paid on a claim from the at-fault party.Subrogation refers to the act of one party taking over the legal rights of another party to seek damages through a lawsuit. Example of subrogation: Mike is involved in a t-bone auto accident that is the fault of Sarah. Subrogation in a workers' compensation case occurs when another party can secure a portion of your workers' compensation benefits. Like any legal document, the subrogation letter can be confusing if you aren't familiar with the term or the process. Click here to learn more about it! Subrogation is the insurance company's right to try to recover a claim. To assist you in completing the sheet, examples of the cases that belong under each case type in item 1 are provided below.