Waiver of subrogation

Giving up the insurance company’s right to seek compensation for losses.

WhatsappFacebookTwitterLinkedinEmail
WhatsappFacebookTwitterLinkedinEmail

What is a waiver of subrogation?

A waiver of subrogation is a clause that’s often included in commercial contracts. When we break down this term, we see that:

  • Waiver means to voluntarily give up or ‘waive’ a right.
  • Subrogation refers to the insurer’s legal right to recover money from a third party who may have caused a loss that the insurer had to cover.

So, when you waive your right to subrogation, the insurance company won’t try to get back the money it paid for a claim from a third party who may have caused the loss.

The benefits of including a waiver of subrogation

It’s essential to review contracts and insurance policies carefully to understand whether a waiver of subrogation is in place and its implications for your insurance coverage and legal rights.

  • Widely used: Waivers of subrogation are frequently used in commercial leases and construction contracts.
  • Preserving relationships: This provision can be advantageous for businesses or individuals seeking to maintain good relationships with third parties, such as landlords, contractors, or clients, as it avoids potential legal disputes.
  • Quicker: With waivers of subrogation, things move faster. There is no need for time-consuming negotiation, litigation or claims process.

Waiver of subrogation and insurance contracts

Subrogation helps insurance companies limit their own risk exposure because they may be able to recoup some of their losses. It also benefits policyholders because it keeps costs down. Since insurers can recover some of the money they pay out in claims, they can offer lower premiums.

Additionally, policyholders get money for their claims faster. They receive payment when they file, not after a potentially lengthy legal experience.

However, if a policyholder decides to include a waiver of subrogation in their insurance contract, they should expect to pay a higher premium.

NEXT offers customized insurance aligned to your business needs

We know your business is unique and has specific needs. That’s why we offer affordable, custom business insurance coverage. To get your tailored instant quote, simply answer a few questions online. Once you’ve purchased your insurance, you can immediately access your certificate of insurance and share it 24/7 via the NEXT app.

Start a free instant quote with NEXT.

banner get business insurance in 10

There’s a lot to love about NEXT

Business insurance in less than 10 minutes

Get insurance in less than 10 minutes and you can save up to 25% in discounts*

Tailored business insurance

Unique, flexible coverage with easy monthly payments

Get business insurance online

Do it all 100% online or talk to a licensed U.S.-based advisor

Let’s find the coverage you need for your business
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
What we cover
Chat with Us

Mon – Fri | 8 a.m. – 5 p.m. CT

FacebookInstagramTiktokTwitterLinkedinYoutube
© 2024 Next Insurance, Inc. 975 California Ave, Palo Alto, CA 94304, United States
Better Business Bureau
Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.