Waiver of subrogation within insurance policies for architects/engineers-
First, it is important to understand the waiver of subrogation definition. Waiver of subrogation is a legal endorsement that prevents an insurer from recovering money they have paid out on a claim from a negligent third party. Your firm may see the waiver of subrogation requirement in contracts.
The waiver of subrogation is most common for workers compensation policies but may also be available on general liability and professional liability. Typically, the waiver of subrogation language is included by endorsement but this will also depend on the specific policy and the insurance company. Here are some examples of the different insurance policies and the language for the waiver of subrogation.
Workers compensation:
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 shall not operate directly or indirectly to benefit anyone not named in the Schedule.
The workers compensation waiver of subrogation is typically added by a special endorsement and may be an additional premium for the endorsement.
General liability:
Waiver Of Rights Of Recovery (Waiver Of Subrogation)
If the insured has waived any rights of recovery against any person or organization for all or part of any payment, including Supplementary Payments, we have made under this Coverage Part, we also waive that right, provided the insured waived their rights of recovery against such person or organization in a contract, agreement or permit that was executed prior to the injury or damage.
For the general liability policy, the waiver of subrogation may already be included in the policy that include the additional insured language as well.
Professional liability:
Subrogation
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 professional liability policy will commonly have the waiver of subrogation included in the policy but the contract must include the requirement.
If you have any questions about waiver of subrogation please call or email your Professional Underwriters agent for assistance.
