What is waiver of subrogation?

Under contract you may be required to provide insurance which includes a waiver of subrogation.

Subrogation is where an insurer inherits your rights and ‘step into your shoes’ to recover losses from a third party who is responsible for a claim, that your insurer has paid in full, on your behalf, to release you from that claim.

Typically this happens when you and your client face a common lawsuit for negligence, which you are both partly at fault for. In this instance, a judgement may be awarded where your insurer incurs the total loss, giving them the right to recover a proportion of that loss back, directly from your client.

A waiver of subrogation is a clause which is added to the insurance, preventing your insurer from their right to recover losses back from your client, for the reimbursement of a paid claim that your client is partly at fault for.

it is extremely important to ensure that your insurance arrangements specifically meet with your contractual requirements and a waiver of subrogation has to be specifically agreed with by your insurer prior to acceptance of this contractual term.

For more information please contact Adam Lawrence on 0118 9165 484 or complete one of our enquiry forms.

Author: Adam Lawrence | May 10th, 2017

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Adam Lawrence
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767   info@macbeths.co.uk