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.