Waiver of Subrogation Gaps
A Waiver of Subrogation is a provision by which the insurance company surrenders its right to sue third parties for compensation on behalf of the insured. Landlords never want to be sued by their tenant or vendors’ insurance company, so many require tenants and vendors to evidence a Waiver of Subrogation.
Missing Waiver of Subrogation
There are many different ways to indicate that a policy has a Waiver of Subrogation.
One method is using the checkboxes on an ACORD 25 COI as in the image below. If a checkmark, “Y” or “X” appear in the checkbox on any row, this indicates the insurers has waived their right to subrogate for that particular policy.
Another method is to mention the Waiver of Subrogation in the Description of Operations box of an ACORD 25 as in the examples below.
If there is not enough space in the Description of Operations, the insurance broker can note the Waiver of Subrogation on an Additional Remarks (ACORD 101) page.
Missing Endorsement for Waiver of Subrogation
Sometimes just noting on a COI that an insurance policy has a Waiver of Subrogation is not enough. After all, COIs have no legal standing and are only meant to summarize the information contained within an insurance policy.
For this reason, landlords often require vendors and tenants to submit an actual endorsement evidencing the Waiver of Subrogation. This is a separate page that affectively amends the insurance policy in a way that is legally binding. The insured may have to pay an additional fee for the insurer to produce such an endorsement.
A waiver of subrogation endorsement can look many different ways depending on the insurer, but you can see common example below.