Contract Glossary
Waiver of Subrogation
Definition
A waiver of subrogation is a contractual clause where one party gives up their insurance company's right to seek reimbursement from the other party after paying a claim.
In Practice
A tenant leases commercial office space. The lease includes a mutual waiver of subrogation. A fire starts due to the tenant's negligence, causing $200,000 in damage. The landlord's insurance pays the claim. The waiver prevents the insurer from suing the tenant to recover — both parties' insurance covers their own losses.
Common in these contract types
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Frequently asked questions about waiver of subrogation
It protects you from being sued by the other party's insurance company. In a lease, both landlord and tenant benefit. The trade-off is slightly higher premiums.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.