PLEASE UPDATE YOUR BROWSER

1 Reason Agency

Insurance and Real Estate

  • About
    • Meet Our Agents
    • Partner Insurance Companies
  • Personal Insurance
    • Car Insurance Quote for Personal Auto
    • Boat Insurance
    • Home Owners Insurance
    • Life Insurance Quotes
    • Motorcycle Insurance
    • Personal Umbrella Insurance
    • Renters Insurance
    • RV Camper Insurance
    • Snowmobile Insurance
  • Business Insurance
    • Commercial Auto Insurance
    • What is General Liability Insurance
    • Rental or Vacant Properties
    • Workers Compensation in Wisconsin
  • Blog
  • Contact
    • Contribute As Guest Author
  • About
    • Meet Our Agents
    • Partner Insurance Companies
  • Personal Insurance
    • Car Insurance Quote for Personal Auto
    • Boat Insurance
    • Home Owners Insurance
    • Life Insurance Quotes
    • Motorcycle Insurance
    • Personal Umbrella Insurance
    • Renters Insurance
    • RV Camper Insurance
    • Snowmobile Insurance
  • Business Insurance
    • Commercial Auto Insurance
    • What is General Liability Insurance
    • Rental or Vacant Properties
    • Workers Compensation in Wisconsin
  • Blog
  • Contact
    • Contribute As Guest Author
Home > Commercial Insurance > What is Waiver of Subrogation Insurance Endorsement

What is Waiver of Subrogation Insurance Endorsement

Posted on: July 23, 2015 By: robert

Waiver of subrogation is when one party (usually an insurance company) gives up the right to recover a paid loss against another party in the event a loss occurs. In order to fully understand what Waiver of Subrogation is, let's look at the parts.

Waiver – Abandoning, surrendering, or relinquishing rights a party is legally entitled to, either by contract or law.

Subrogation – Is an assignment to an insurance company (insurer) in the insureds (you or your company) name either by policy terms or by statute (law), to recover money paid from the insurance company towards a claim. Common subrogated assignments come from property damage, but other losses can invoke subrogation that include indemnity (making whole) policies. An example of an insurance policy where subrogation doesn't occur is in life insurance policies. If your spouse dies because of negligence of another, the insured (you and possibly others) maintain their right to sue the negligent party for the death.

Putting it all together, a waiver of subrogation in an insurance policy is an insurance company releasing another party from fear that if there's a loss, the insurance company may come after them. It's often done via endorsement(s) to an existing or newly issued policy, but it can be in the policy language to begin with.

Using the death of a spouse example again, if you have auto insurance and life insurance on your vehicles and family members and your spouse is killed by another motorist who is at fault, your auto insurance company can go after the "at fault" party to recover money paid to you to reimburse you, but your insurance company can't. 

Subrogation is one tool insurance companies use to keep insurance premium lower. It's because the insurance company knows or at least believes some of its losses are recoverable from the negligent parties. When an insurance company grants a waiver of subrogation, it must rely solely on insurance premiums to pay losses/claims, so insurance companies will either charge more for the policy or charge for a waiver of subrogation endorsement to an insurance policy.

Comments

comments

Categories: Commercial Insurance, Insurance Terms, Life Insurance

Leave a Comment Cancel

You must be logged in to post a comment.

Categories

  • Bookkeeping
    • Business Taxes
  • Business Marketing
  • Car Insurance
  • Commercial Auto
  • Commercial Insurance
  • Court Cases
  • Cyber Liability Insurance
  • Employment Opportunities
  • Employment Practices
  • Flood Insurance
  • Home Ownership
  • Homeowner's Insurance
  • Insurance Companies
    • Insurance News
  • Insurance Terms
  • Investing
    • Finance & Insurance News
  • Life Insurance
  • Non Emergency Medical Transportation
  • Payroll
  • Pinewood Derby
  • Real Estate News
  • Rental Property Insurance
  • Retirement & Estate Planning
  • RV Insurance
  • Starting A Business
  • Stock Dividends
  • SuiteCRM Insurance CRM
  • Tips & Advice
  • Travel
  • Uncategorized
  • Webhosting
  • Worker's Compensation

Recent Posts

  • Vornado Completes $525 Million Refinancing of One Park Avenue
  • Landmark Infrastructure Partners LP Announces 2020 K-1 Tax Package Availability
  • FRP Holdings, Inc. Announces Release Date for Its Fourth Quarter and Year Ended December 31, 2020 Earnings and Details for the Earnings Conference Call
  • Ryman Hospitality Properties, Inc. Reports Fourth Quarter and Full Year 2020 Results
  • Leading InsurTech Company TypTap Raises $100 Million from Centerbridge
  • Newly formed digital business unit to lead transformative tech-led strategy for Beazley
  • Park Hotels & Resorts Inc. Reports Fourth Quarter and Full Year 2020 Results
  • Homepie Becomes California’s Hottest Brokerage for Savings