A waiver of subrogation can restrict an insurer’s ability to recover money from another party after paying a claim.
For example, a contract may require an engineer’s insurer to waive rights of recovery against the client, principal or another project participant.
This is important because an engineer generally cannot agree on behalf of their insurer to give up rights the insurer would otherwise have.
If a contract requires a waiver of subrogation, engineers should check:
- which policy the requirement applies to
- which party must receive the waiver
- whether the insurer will agree to it
- whether an endorsement is required
- whether additional premium or conditions apply
The requirement should be checked with the insurer or broker before the engineer agrees to it contractually.
