Can the insurance company recoup expenses for a claim paid out when another Party should have been responsible for paying at least a portion of that claim?
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No - Insurance policies include a waiver of this right (known as subrogation rights) against any directors and other employees of any insured Party. This prevents insurers taking action against the Employer’s personnel, for example after having paid money to the Contractor in settlement of a claim by him (see Clause 85.2). The only exception to the waiver of subrogation rights is where there is fraud (see Clause 85.2).