A Waiver of Subrogation is a clause found in business insurance policies. It prevents an insurance company from seeking reimbursement from a third party that caused a loss to an insured party.
After an insurance company pays a claim, it has the right to recover its loss from any party that contributed to the loss - this process is called "subrogation". However, when a Waiver of Subrogation is in place, this right is waived.
These waivers are common in commercial leases and construction contracts.
For example: A building owner may require a tenant to include a Waiver of Subrogation in their renter's insurance policy, so if the tenant accidentally causes damage to the property, the building owner's insurance company cannot seek to recover the claim amount from the tenant or the tenant's insurance.