Subrogation. Another weird word you may have heard being tossed around the commercial insurance world. It's so foreign that spell check wants to correct it. Subrogation is a process that enables the insurance company, after a loss has been paid under the policy, to recover the amount paid from any party who caused the loss or is otherwise legally liable of the loss.
Here's a claim scenario that actually happened where subrogation took place:
Insured has a manufacturing business. Some welding work needed to be done to the building. Welder comes out to do work and building went up in flames and caused about $1.2M in property damage. Business owner's insurance company paid claim then went after the welder for the $1.2M.
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