A waiver of subrogation is a provision in an insurance policy that prevents the insurer from seeking reimbursement from a third party for losses that the insurer has paid to the policyholder.
This means that if the insurer pays out on a claim made by the policyholder, the insurer cannot then go after the person or entity responsible for the loss to recover the money that was paid out.
The purpose of a waiver of subrogation is to protect the policyholder from being sued by the insurer or by the third party responsible for the loss. This can be particularly important in situations where the policyholder may be held liable for the loss, such as in the case of a car accident.
In general, a waiver of subrogation is included in insurance policies to limit the insurer’s potential liability and to protect the policyholder from being sued.
It is important to carefully review the terms of your insurance policy to understand whether it includes a waiver of subrogation and how it may affect your rights and obligations.
