Upon payment or indemnification of a claim to the insured caused by a failure of the buyer, the insurer steps into the insured’s position and assumes all the rights and remedies of the insured against the buyer. By executing these rights and remedies the insurer can;

  1. possibly recover the indemnified amount from the buyer;
  2. avoid overcompensation to the insured. Subrogation occurs without any agreement between the insurer and the insured.