What is letter of subrogation and indemnity?

A letter of subrogation and indemnity is a legal document that transfers the right to pursue a claim from one party to another, typically in the context of insurance. It allows the insurer to step into the shoes of the insured to recover costs from a third party responsible for a loss. The indemnity aspect ensures that the original insured party agrees to hold the insurer harmless for any claims related to the loss. This arrangement helps streamline the recovery process for the insurer while protecting the interests of both parties involved.