
What is waiver of subrogation?
Embed Image
When you read your insurance policy documents, you may come across the term ‘waiver of subrogation.’ Subrogation claim is one of those ‘insurance-y’ terms that it’s helpful to understand.
What is subrogation?
Subrogation insurance is when your insurance company, after paying a loss, inherits your right to recoup its payment from another party, if that party is also partially responsible for the loss.
For example, suppose you are a marketing consultant, and you and your client are sued for copyright infringement. A judgment is awarded that requires your insurance company to pay in full in order to release you from the claim. A subrogation clause can be helpful if a client was also partially responsible for the loss, as you would have the right to recover the part of the loss that was your client’s fault.
Since your insurance company paid the full amount of the subrogation claim on your behalf, they now inherit your right to recover that portion of the loss. Your insurance company can seek to recover damages from your client or their insurance company through their right of subrogation.
What does it mean to waive your rights of subrogation?
A waiver of subrogation relinquishes your right of subrogation. Clients may want your business to waive your right of subrogation so they will not be held liable for damages if they are partially responsible for a loss. When you waive your right of subrogation, your business (and your insurance company) are prevented from seeking a share of any damages paid. This waiver of subrogation eliminates potential conflicts between you and your client.
How do I obtain a waiver of subrogation?
A waiver of subrogation can typically be accommodated on Hiscox policies. However, it increases our exposure, since you are giving up your right to recover any losses from your client(s). Therefore, your premium may increase with a waiver of subrogation. You’ll want to factor in any premium increase when determining the price you charge your client for your work.
Why choose Hiscox for your waiver of subrogation request?
We’ll work with to fully understand your waiver of subrogation request and the risk that is being undertaken.
You can request a waiver of subrogation for your policy online, or call us at 1-888-202-3007, Mon-Fri, 7am – 10pm ET and speak to a licensed agent.
Protect the business you’ve worked so hard to build. Get a fast, free quote and your business could be covered today.
Related Articles

Taking time off when you're the boss: 9 tips
Taking time off when you're the boss: 9 tips
As a small business owner, it can be a challenge to take time away, but with a little preparation and planning
Read More
Bringing your dog to work: Luxury or liability?
Bringing your dog to work: Luxury or liability?
Bringing your beloved canine companion to work can be one of the perks of being your own boss. After all, getting pet snuggles during the workday is great for morale. But is it always a good idea? Here’s what you need to know.
Read More
Focus on liability insurance: does my commercial lease need it?
Focus on liability insurance: does my commercial lease need it?
If you're running your small business using a commercial space you may be wondering if your commercial lease requires you to carry liability insurance. Here's what you need to know.
Read MoreWe provide tailored insurance for the specific risks you face, so you can take the right risks to grow your business.