Fundamentals
Third-Party Liability
Third-party liability is the legal responsibility of someone other than the insurer or its policyholder for a loss, the basis on which any subrogation claim is pursued.
Subrogation only exists when a third party (not the insured, not the insurer) caused or contributed to the loss. Identifying that liable third party, and the coverage behind them, is the first question in any recovery. No third party, no subrogation.