Subrogation is an insurer's right to step into its insured's shoes and recover a paid loss from whoever caused it. A waiver of subrogation is an endorsement in which the insurer gives up that right against a named party, so that party cannot be pursued after the insurer pays. It has to be endorsed on the policy to have effect.
Updated September 2026.
Why brokers care
Waivers are standard in construction, leasing and service contracts, and they are frequently promised in the agreement before anyone confirms the policy will grant one. Not every insurer will, and some charge for it. A contract that requires a waiver the policy does not contain leaves the client in breach of the agreement and the counterparty exposed to a recovery action nobody expected.
What to check
- That the endorsement exists on the policy for each required line
- Which parties the waiver actually names, since blanket forms vary
- Whether the contract requires it before the loss, which most forms do
- That it has not lapsed at renewal, since waivers are commonly dropped
- Whether the insurer charged for it, since that affects the renewal conversation
Common mistake
Assuming it carried forward at renewal. Waivers are routinely dropped when a policy remarkets, and the certificate produced from the new policy may still carry last year's wording if it was copied rather than rebuilt.
The full review sequence is in the certificate review checklist.