Subrogation Agreement Template for Germany

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Key Requirements PROMPT example:

Subrogation Agreement

"I need a Subrogation Agreement under German law for our insurance company to take over the rights of our corporate client in the manufacturing sector, following our payment of €2.5M for equipment damage caused by a third-party contractor during installation."

Document background
A Subrogation Agreement is essential in situations where one party has compensated another for a loss and seeks to exercise the compensated party's rights against the party responsible for the loss. Under German law, this document formalizes the transfer of recovery rights, ensuring compliance with both the German Civil Code and Insurance Contract Act. The agreement is commonly used in insurance scenarios but also applies in other commercial contexts where debt payment or loss compensation occurs. The document typically includes detailed provisions about the transferred rights, cooperation requirements, and recovery procedures. A properly structured Subrogation Agreement is crucial for preserving and effectively exercising recovery rights, particularly given the formal requirements of German law regarding the assignment of claims and the principle of good faith (Treu und Glauben).
Suggested Sections

1. Parties: Identification of the Subrogating Party (typically insurer) and the Subrogor (typically insured)

2. Background: Context of the original claim, payment made by the insurer, and basis for subrogation

3. Definitions: Key terms used throughout the agreement, including 'Claim', 'Loss', 'Recovery Rights', and 'Subrogated Rights'

4. Subject Matter of Subrogation: Detailed description of the rights, claims, and remedies being transferred

5. Consideration: Statement of consideration paid or to be paid for the subrogation

6. Transfer of Rights: Legal mechanics of the transfer of rights and effective date

7. Representations and Warranties: Confirmations regarding ownership of claims, no prior assignment, and authority to transfer

8. Cooperation Obligations: Duties of the Subrogor to assist in pursuing claims

9. Information and Documentation: Requirements for sharing relevant information and documents

10. Costs and Expenses: Allocation of costs related to the pursuit of subrogated claims

11. Governing Law and Jurisdiction: Specification of German law application and jurisdiction

12. Execution: Signature blocks and execution requirements

Optional Sections

1. Recovery Sharing: Terms for sharing any recoveries if not 100% subrogation - used when partial rights are transferred

2. Third Party Rights: Provisions regarding rights of third parties - used when other parties may have interests in the claims

3. Confidentiality: Confidentiality obligations - used for sensitive commercial matters

4. Data Protection: GDPR and data protection provisions - used when personal data is involved

5. Further Assurance: Obligations to execute additional documents - used for complex subrogations

6. Notices: Formal communication requirements - used in larger commercial agreements

7. Severability: Provisions for partial invalidity - used in complex agreements

8. Assignment: Rights to further assign subrogated claims - used when further transfers may be needed

Suggested Schedules

1. Schedule 1 - Claim Details: Detailed description of the underlying claim and circumstances

2. Schedule 2 - Payment Evidence: Documentation of payments made by the subrogating party

3. Schedule 3 - Relevant Documents: List and copies of key documents relating to the claim

4. Schedule 4 - Power of Attorney: Form of power of attorney for pursuing claims

5. Appendix 1 - Contact Details: Contact information for key personnel involved in claim pursuit

6. Appendix 2 - Procedure for Cooperation: Detailed procedures for cooperation between parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Insurance

Banking and Financial Services

Manufacturing

Construction

Transportation and Logistics

Healthcare

Real Estate

Maritime and Shipping

Energy

Professional Services

Retail

Automotive

Relevant Teams

Legal

Claims

Risk Management

Compliance

Insurance Operations

Recovery

Underwriting

Contract Management

Corporate Affairs

Loss Adjustment

Relevant Roles

Insurance Claims Manager

Legal Counsel

Risk Manager

Claims Adjuster

Compliance Officer

Insurance Underwriter

Recovery Specialist

Corporate Lawyer

Insurance Operations Manager

Claims Recovery Manager

Subrogation Specialist

Contract Manager

Insurance Broker

Chief Risk Officer

Legal Operations Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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