Legal & Jurisdiction

Waiver of Subrogation

A waiver of subrogation is a contract clause in which one party gives up its insurer's right to pursue recovery against another party.

Common in leases and construction contracts, a waiver of subrogation prevents an insurer from recovering against a named party even if that party was at fault. Recovery teams have to screen for these waivers early, pursuing a claim that a signed waiver has already extinguished wastes effort and can breach the contract.