Subrogation is a basic insurance concept used in construction and contractors insurance policies. Typically, an at-fault party’s insurance carrier is liable for the cost of a loss.  The insurance carrier can then choose to sue another at-fault party to the amount or partial amount of the claim they paid.  This process of recovering funds from a third party is called subrogation.  The waiver of subrogation waives the carriers right to subrogate from a third party (GC or Project owner) that had entered into this agreement prior to the claim’s occurrence.