Waiver of Subrogation Law and Legal Definition
Waiver of subrogation refers to a contract clause giving up the right to subrogation. Subrogation means one party has the right to "step into the shoes" of another party for the purposes of bringing a claim for damages. Not all types of claims may be subrogated. The most common type that can be subrogated is property damage claims.
A waiver of subrogation clause is placed in a services contract to minimize lawsuits and claims among the parties. The result is that the risk of loss is agreed among the parties to lie with the insurers, and the cost of the insurance coverage is contractually allocated among the parties as they may agree. The risk, once assigned to the insurers by the parties, prevents the insurer to seek redress from the party "at fault."