Legal Definition of Subrogation: (a) The act of substituting a claim against one person for a claim against another person. (b) The substitution of one individual for another in claiming a debt or right | Learn about the legal definition of subrogation and its importance for business owners. Discover real-life examples of subrogation in action and how it can help recover costs and ensure accountability. Understand the financial implications and make informed decisions for your business. Safeguard your interests and uphold fairness in legal proceedings with a clear understanding of subrogation