Subrogation can allow an insurer to pursue recovery rights associated with a loss it has indemnified, subject to the applicable law and policy.
The distinction that matters
A policyholder’s agreement to waive recovery rights can affect the insurer’s position and should not be assumed harmless.
What to check
- Notify the insurer of recovery rights.
- Check contract waivers before signing.
- Avoid prejudicing recovery without advice.
Example to discuss
A contractor asks its insurer about a client’s waiver request before agreeing to release another party from liability.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.