Rationale For Subrogation

Subrogation underlies the moral notion that the guilty should have to pay while the innocent should be spared. If you are injured at work and your injury is attributable to someone other than your employer, it only seems right that this third party should have to pay for your injuries. Therefore, the injured employee is able to sue the third party, directly responsible for his/her injuries, as well as the employer, who is automatically liable for benefits under the Workers’ compensation statute for all work-related injuries. To protect the innocent employer, the employer is reimbursed for the cost of the statutory benefits, with the reimbursement made from the damages paid out by the third party.