A waiver of subrogation can have a profound impact on your insurance coverage. Use the brief explanation below to gain perspective, but keep in mind that it’s always a good idea to review any questions you have about your policy with the professionals. We are happy to help you understand anything about your exhibitor insurance coverage with us—just call us!
Waiver of Subrogation De-Mystified
To put it simply, subrogation relates to an insurer paying the insured (which is you as a policyholder) for a loss caused by a third party. The insurance company may also be “subrogated”. Which is to say, the insurance company can represent you, the insured, to take legal action against the third party and recover the loss to you (as the insured).
For instance, you may be dealing with damages caused by negligence or a mistake by another business, and your insurance company can then take legal action in your place to recover the funds and pay you. Because the insurer is taking the financial risk through your policy, in a sense you also agree not to personally go after the third party, and you agree to let your insurance company do it for you.
This subrogation agreement is generally a universal insurance policy term, but in some contracts, a waiver of subrogation is included. For example, you may come across a contract before leasing a space that includes a waiver of subrogation. This waiver could negatively affect your coverage, so it’s important to get it checked over with your insurer.
What to Do with a Waiver of Subrogation?
You don’t necessarily have to reject your contract outright, but you do need to present the contract to your insurance company. Your insurance company can then potentially make adjustments to the policy, explain any coverage changes, and help you understand what it all means.
For a waiver of subrogation, your insurance company may add an endorsement. Because the waiver essentially inhibits the insurer from taking legal action to recoup funds from a third party, your premium will likely increase, but you’ll still have insurance coverage.
Still confused? Give us a call and we can help walk you through what a waiver of subrogation means for your policy. Whether you have a specific question about your policy with us or you need to get exhibitor’s insurance for the first time, we’re here for you.