waiver of subrogation

A waiver of subrogation is an agreement in which one party gives up its right to seek repayment from another party for a loss or damage that the other party's insurance has covered. Essentially, if an insurance company pays for a loss, it usually has the right to pursue the responsible party for reimbursement. However, with a waiver of subrogation, that right is relinquished, preventing the insurance company from going after the other party. This is often used in contracts to reduce disputes and foster cooperation between parties, such as in construction projects or leases.