Business Insurance
Waiver of Subrogation
A waiver of subrogation stops an insurer from pursuing the party at fault for a loss, typically required by contract so that business partners are not sued by each other's insurers.
Last reviewed: May 2026 · Editorial methodology
Definition
Subrogation is an insurer's legal right to step into its insured's shoes and pursue a claim against the party responsible for the loss after paying the insured's claim. A waiver of subrogation endorsement contractually surrenders that right against a named party — for example, if a landlord's insurer pays for fire damage caused by a tenant's negligence, a waiver of subrogation prevents the insurer from suing the tenant to recoup the payment. Commercial leases, construction contracts, and many service agreements routinely require tenants, subcontractors, and vendors to add a waiver of subrogation in favor of the other party. Blanket waiver of subrogation endorsements extend this protection to any party where a written contract requires it, which is more efficient than scheduling each one individually. Waiver of subrogation does not reduce the insured's own coverage — it only affects who the insurer can pursue after paying. The endorsement is typically low or no-cost to add but must be in place before any loss occurs; attempting to add it retroactively after a claim is made will not be honored.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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