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.

Where this term matters

Business Insurance →/business/general-liability →/business/contractor-insurance →Landlord Insurance →

Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

Additional InsuredAn additional insured endorsement extends the named insured's liability coverage to protect a third party — typically a client, landlord, or general contractor — from claims related to the named insured's work.Certificate of Insurance (COI)A certificate of insurance (COI) provides third parties — landlords, clients, general contractors — with evidence of a business's insurance without sharing the full policy.Primary and NoncontributoryA primary and noncontributory requirement — common in construction and service contracts — ensures that one party's insurance pays before and independently of the other party's coverage.
Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

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 June 2026

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