What is a waiver of subrogation?
A waiver of subrogation is a clause that stops an insurer from coming after a third party to recover money it paid on a claim. In vendor and lease agreements, it means the vendor's insurer cannot turn around and sue you to recoup a payout — a common requirement in contracts and leases.
What subrogation is
Subrogation is an insurer's right to "step into the shoes" of the party it paid and pursue whoever was actually at fault. A waiver gives up that right against a named party — usually you.
When it's required and how it shows up
Contracts often require the vendor to carry a waiver of subrogation in your favor. It is noted on the certificate of insurance (typically in the description field) and backed by an endorsement on the policy, the same way additional insured status is.
Related terms
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