From Longman Business Dictionarysubrogationsub‧ro‧ga‧tion /ˌsʌbrəˈgeɪʃən/ noun [uncountable] INSURANCE the principle that when an insurance company pays a claim, it has the right to any other money that the insured person can get for the same loss, for example money from the person who caused the lossThere is a subrogation clause in the policy.