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.