Waiver of Subrogation
What is waiver of subrogation on insurance policies for Architects and Engineers? Waiver of subrogation is a contractual provision where your firm agrees to limit the rights of its own insurance carrier. The insurance carrier would not be able to pursue a claim against the other party to the contract in an attempt to recover money paid by the insurance company.
The most common policy that waiver of subrogation is requested is the Workers Compensation policy. The endorsement may look something like the following:
WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT
We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) This agreement shall not operate directly or indirectly to benefit any one not named in the Schedule.
DESIGNATED ORGANIZATION: XXX
ANY PERSON OR ORGANIZATION FOR WHICH THE INSURED HAS AGREED BY WRITTEN CONTRACT EXECUTED PRIOR TO LOSS TO FURNISH THIS WAIVER.
Business Owner Policy
The waiver of subrogation is typically included in the policy automatically may read as follows:
We waive any right of recovery we may have against any person or organization because of payments we make for injury or damage arising out of premises owned or occupied by or rented or loaned to you; ongoing operations performed by you or on your behalf, done under a written contract with that person or organization; “your work”; or “your products”. We waive this right where you have agreed to do so as part of a written contract signed by you prior to loss.
Waiver of subrogation is not as common in the Professional Liability policy but is still available. It doesn’t typically need to be endorsed but be sure you check with your insurance company. Here is an example of the waiver of subrogation language.
If any Insured has rights to recover amounts from another, those rights are transferred to the Company to the extent of the Company’s payment. The Insured must do everything necessary to secure these rights and must not do anything after a Claim is made to jeopardize them. The Company hereby waives subrogation rights against the Insured’s client to the extent that the Insured had a written agreement to waive such rights prior to a Potential Claim or Claim.
The waiver of subrogation is common in contracts for Architects and Engineers. Be sure you check with each insurance company on each separate policy to verify it is included and if not if it can be added by endorsement. Please call or email your PUI Agent with questions.