Legal & Jurisdiction
Contribution
Contribution is the sharing of a loss among multiple insurers or responsible parties, each paying its proportionate share, distinct from subrogation's recovery from an at-fault third party.
Contribution applies when more than one insurer covers the same loss, or more than one party is liable: each contributes its share. Subrogation, by contrast, shifts cost to a party outside the policy. The two are often confused but answer different questions, who shares a loss versus who ultimately bears it.