August 29, 2018

Before you agree to a Waiver of Subrogation

If you are a vendor, supplier, sub-contractor, third-party provider or tenant, you may have been asked to sign a Waiver of Subrogation.  It may have come in the form of an endorsement/stand-alone document or it may have been part of a broader contract.  WARNING: Do Not Take These Lightly!

By waiving the right of subrogation, you are signing a court-tested, legal document which will make it impossible for your insurance company to recover money they are due from an At-Fault third party.  While the Waiver of Subrogation may be required before you can get a job, rent a commercial space, or provide materials or products, you aren’t authorized to grant this Waiver.

Am I prohibited from entering into a contract that contains a Waiver of Subrogation?  No, you may very well be able to enter into such an agreement.  However, before doing so you need to provide the information to your insurer.  The will either authorize the waiver or provide you with guidance regarding the language that would be acceptable.    

What happens if I already have entered into a Waiver of Subrogation?  DO NOT HIDE or OVERLOOK this.  Failure to disclose this information could result in cancelation or denial of coverage.