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 Why Would an Insured Want a Waiver of Subrogation?

Why Would an Insured Want a Waiver of Subrogation?

When shopping for insurance coverage, you may come across the term “waiver of subrogation.” This clause is often included in property and liability insurance policies and can have a significant impact on the insured’s rights and obligations in the event of a loss. Let’s what a waiver of subrogation entails and what it means for an insured.

Subrogation: An Introduction

Before we delve into the concept of a waiver of subrogation, it’s important to understand what subrogation means. In insurance, subrogation refers to the legal right of an insurer to pursue a claim against a third party who caused or contributed to the insured’s loss. In other words, if your insurance company pays for damages or losses that were caused by someone else’s negligence or wrongdoing, the insurer may seek reimbursement from that third party.

The purpose of subrogation is to prevent the insured from “double-dipping” by receiving compensation from both their insurance company and the party responsible for the loss. Subrogation allows the insurer to recover the funds it paid out and helps keep insurance premiums lower for everyone.

Waiver of Subrogation: An Overview

Now that we understand the basics of subrogation, let’s explore what a waiver of subrogation means. Essentially, a waiver of subrogation is a contractual agreement between the insured and the insurer in which the insured agrees to waive their right to recover damages from a third party who may have caused or contributed to their loss.

Put simply, if a waiver of subrogation is included in an insurance policy, the insured won’t be able to pursue a claim against a third party for damages that the insurer has already paid for. Instead, the insurer will assume the role of the injured party and will pursue any available legal or insurance remedies against the third party.

A waiver of subrogation is often included in policies involving property damage or liability, such as commercial general liability, workers’ compensation, and property insurance. It is usually added as an endorsement or rider to the policy.

Why Would an Insured Want a Waiver of Subrogation?

There are several reasons why an insured might request or agree to a waiver of subrogation in their insurance policy. Here are a few of the most common:

To satisfy contractual requirements. Some business contracts, such as construction contracts, may require one or more parties to waive their rights of subrogation. In these cases, the insured may need to request a waiver of subrogation from their insurer in order to comply with the contract.

To limit liability exposure. If an insured is involved in a loss that is caused by a third party, pursuing a subrogation claim can be a lengthy and costly process. By agreeing to waive subrogation, the insured can potentially avoid the burden of pursuing a claim and limit their liability exposure.

To prevent conflicts. Pursuing a subrogation claim can sometimes create conflicts between the insured and the third party who caused the loss. By waiving subrogation, the insured can avoid these potential conflicts and maintain a better working relationship with the third party.

It’s worth noting that while a waiver of subrogation can be beneficial in certain situations, it can also limit the insured’s options in the event of a loss. If the loss was caused by a third party, the insured may not be able to pursue legal action against that party unless the insurer decides to pursue a subrogation claim on their behalf.


In summary, a waiver of subrogation is a contractual agreement between an insured and an insurer by which the insured waives their right to recover damages from a third party who may have caused or contributed to their loss. This clause can be included in a variety of insurance policies and can have significant implications for the insured’s rights and obligations. If you’re considering a waiver of subrogation, it’s essential to carefully evaluate the potential benefits and drawbacks and consult with an experienced insurance professional to ensure you’re making an informed decision.

Why A.N Nunes Agency?

Not all insurance agents are the same! Choosing the right one can make a big difference – in price, service, and value.

With other agencies, you get one company that sells one brand of insurance. With a trusted choice independent insurance agency like A.N. Nunes Agency, you get choices.

Why? Because independent insurance agencies represent a number of different insurance companies and can compare coverage and prices to find the best possible value for your individual circumstances. As independent agents, we are members of the Rhode Island and Massachusetts communities, and we’re committed to doing business face-to-face and being your advocate in times of need.

Primarily serving the East Bay community in both RI and MA, here are a few reasons why A.N. Nunes Agency should be your first and last stop when looking for insurance.

  • We work for you when you have a claim.
  • We are not beholden to any one company. This means you don’t have to change agencies as your insurance and service needs change.
  • We are your consultants, working with you as you determine your needs.
  • We are value-hunters who look after your pocketbook in finding the best combination of price, coverage, and service.
  • We offer one-stop shopping for a full range of products, including home, renters, auto, business, life, health, and retirement plans.
  • We can periodically review your coverage to keep up with your changing insurance needs.
  • We are committed to customer satisfaction – it’s the key to our livelihood.
  • We treat you like a person, not a number.
  • We are licensed professionals with strong customer and community ties.

There is a difference. To find out how our independent insurance agency can help you find the right insurance coverage, please contact one of our agents today. Give us a call at 401-253-5300

A.N Nunes Agency

A Trusted Choice Independent Agency

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