What is the legal principle allowing one party to seek reimbursement from a third party who caused a loss?

The legal principle that allows one party to seek reimbursement from a third party who caused a loss is known as subrogation. This process occurs after an insurance company pays a claim to the insured party. The insurance company then has the right to pursue the responsible third party to recover the amount it has paid out, hence "standing in the shoes" of the insured.

Subrogation is an essential aspect of insurance as it helps prevent the responsible party from benefiting from their wrongful conduct. It also allows insurance companies to recoup their losses, which can help maintain the overall affordability of insurance coverage for all policyholders.

In contrast, the other terms do not accurately represent this principle. Indemnification refers to the obligation of one party to compensate another for a loss or damage, typically as part of a contract. Contravention refers to the act of breaking or violating a law or regulation, while reconciliation generally involves the process of making two or more ideas, facts, or concepts compatible or consistent with each other. None of these concepts align with the process of seeking reimbursement from a third party for losses incurred.