Agreement for Waiver of Subrogation

An agreement for waiver of subrogation is a legal document that helps protect parties in a contract from financial liability in case of an accident or loss. Essentially, it`s a provision that prevents an insurance company from seeking reimbursement from a third party in the event of a claim.

Here`s how it works. Let`s say you own a commercial property and you enter into a lease agreement with a tenant. As part of that agreement, you require the tenant to carry liability insurance in case of any accidents on the property. However, if an accident were to occur, the tenant`s insurance company could seek reimbursement from you since you own the property. This is where the agreement for waiver of subrogation comes in.

By including this provision in the lease agreement, you`re essentially saying that the tenant`s insurance company cannot seek reimbursement from you in case of a claim. The tenant`s insurance policy will still cover any damages or losses, but the insurance company cannot turn around and sue you to recover those costs.

This type of agreement is also commonly used in construction contracts. For example, if you hire a contractor to work on your property, you may require them to carry liability insurance in case of any construction-related accidents. However, if an accident were to occur, the contractor`s insurance company could again seek reimbursement from you since you own the property. By including an agreement for waiver of subrogation in the contract, you can prevent this from happening.

It`s important to note that an agreement for waiver of subrogation should be drafted by a qualified attorney to ensure that it`s legally enforceable and provides the necessary protections for all parties involved. Additionally, insurance policies may have their own requirements for including this provision, so it`s important to review the policy carefully before entering into any agreements.

Overall, an agreement for waiver of subrogation can provide valuable protections for property owners and contractors. By preventing insurance companies from seeking reimbursement, parties can focus on resolving any issues that arise without the added stress and financial burden of a potential lawsuit.