What is the term for the transfer of right or recovery against others to an insurance company?

The term for the transfer of right or recovery against others to an insurance company is known as the subrogation clause. This legal principle allows the insurance company to step into the shoes of the insured after paying a claim. Essentially, when the insured suffers a loss and receives compensation from the insurer, the insurer gains the right to pursue recovery from any third party that may have been responsible for the loss. This mechanism helps insurers minimize their own losses by recouping costs from those at fault, promoting accountability, and keeping premiums lower.

In the context of insurance policies, other terms mentioned do not relate to the transfer of rights or recovery. An abandonment clause is associated with the insured's right to abandon damaged property to the insurer. A salvage clause pertains to the insurer's right to reclaim and sell damaged property to reduce their loss. Lastly, an insuring agreement outlines the coverage provided by the insurance policy but does not deal with the recovery of losses from third parties. Understanding subrogation is crucial, as it helps both insurers and insured parties navigate the complex interactions after a loss occurs.