A waiver of subrogation is a contractual clause in which an insured waives their insurance company’s right to seek restitution or reimbursement from a negligent third party. A waiver of subrogation endorsement is usually charged at an extra cost by insurers. A waiver of subrogation provision is used in many construction contracts and leases.
Such clauses restrict one contractual party’s insurance carrier from pursuing a claim against the other contractual party in order to recover money paid by the insurance company to the insured or a third party to resolve a covered claim.