Waiver of Subrogation

A contract term where your insurer gives up its right to go after the other party after a claim. Often required in commercial contracts.

A waiver of subrogation is a contract provision where your insurer agrees, in advance, to give up its right to recover from another party after paying a claim.

Normally, if a third party causes a loss your insurer pays for, the insurer can pursue them to get its money back (subrogation). Commercial contracts — leases, construction agreements, vendor deals — frequently require each side to waive that right against the other, so a claim doesn’t turn into finger-pointing between their insurers.

Your policy has to permit it, usually via a blanket endorsement that applies “where required by written contract.” It typically adds a bit of premium, especially on workers’ comp, and it’s worth confirming it’s in place before you sign.

This is a friendly general explanation, not legal or policy language. Exact coverage depends on your policy, carrier, and state. 🤝

Written and reviewed by the We Insure Things team — licensed independent insurance agents. Last reviewed July 23, 2026. Questions? Ask a licensed agent.