Wordings Library
Parties & recovery
Clause explained
Waiver of Subrogation
Restricts the insurer's right, after paying a claim, to recover from a specified party.
Meaning
Restricts the insurer's right, after paying a claim, to recover from a specified party.
Why insurers use it
To align recovery rights with contracts or relationships while defining exactly whose liability is protected.
Effect on coverage
May preserve commercial relationships, but only for named parties, activities, and periods within the endorsement.
Illustrative example
A landlord requires the tenant's insurer to waive recovery rights against the landlord.
Claim consequence
An unclear or missing waiver may allow a recovery action after payment and create a contractual dispute.
What the insured should negotiate or check
Check named parties, reciprocity, negligence carve-outs, timing, and whether the waiver applies before and after loss.