Insurance insights 101 | What does a waiver of subrogation mean?
Clarity matters. That’s why we write about key insurance terms and share insights about what specific terminology actually means. Every wonder what a waiver of subrogation actually is? Well, it’s an agreement between two parties in which one party agrees to waive subrogation rights against another in the event of a loss.
The intent of the waiver is to prevent one party’s insurer from pursuing subrogation against the other party. Generally, insurance policies do not bar coverage if an insured waives subrogation against a third party before a loss.
However, coverage is excluded from many policies if subrogation is waived after a loss because to do so would violate the principle of indemnity.
Want more useful Canadian insurance insights?
Read our Insurance Info Blog!
What’s an indemnity?
According to IRMI.com, an indemnity is restoration to the victim of a loss up to the amount of the loss.
Here’s a brief explainer from our blog about what an indemnity is, how it works and what it might mean…
“Indemnity is often used as a synonym for compensation or reparation. All three can be construed as obligations to act on an injured party’s behalf given the occurrence of a contractually-specified event. However, indemnity as a legal concept has a much broader meaning than the other two terms; namely, an indemnity is to make a party to a contract “whole” again should that contractually-specified event occur.” Read moreALIGNED Insurance – Indemnity is the ALIGNED term of the day
Does it make sense to accept a waiver of subrogation?
It depends. To learn more about the potential impacts of accepting or imposing a waiver of subrogation, contact ALIGNED Insurance. An ALIGNED Advocate can provide expert guidance about insurance and risk management best practices for your organization.
Talk to one of our advocates today about how we can help you secure the best products, services and insurance solutions for your business.
Uniquely within the industry, all commercial insurance products and services that our team of brokers create, negotiate and deliver are designed to support the specific needs of Canadian business.
More than just delivering products, we also share insurance insights – like this – in our extensive blog.
Online insurance – get your business coverage right now
We also make it super easy for Canadian business to buy online insurance products. Here are just some of the popular commercial insurance products you can buy fully online right now:
- DAS Business Legal Expense Insurance
- Cyber Liability Insurance
- Directors Insurance For Non-Profits
- Health, Wellness & Fitness Liability
- Hole In One Event Insurance Coverage
- Professional Liability
- Retail Store Insurance
Contact our insurance brokers today us today to get a quote for any or all of the commercial insurance products you need.
We’re here to help you find the BEST commercial insurance…
Our team of insurance brokers is available to help answer any and all questions you might have about all of our commercial insurance products. If you have a question about business insurance, are uncertain about what a particular coverage term means, or simply want to find commercial insurance that directly aligns with your needs, don’t hesitate to call us toll-free at 1-866-287-0448.
It’s time to get your insurance aligned. Want Canadian business insurance that’s ALIGNED with your bottom line? We can help. 365. Call us toll-free at 1-866-287-0448.
We’re ALIGNED across Canada. The ALIGNED Insurance National Operations Centre in Cambridge, Ontario supports our Toronto, Calgary and Vancouver offices. We’re proud our industry peers consistently recognize ALIGNED Insurance as one of the best insurance teams in the country. We are also very proud to be one of the fastest growing insurance brokerages in Canada.
We deliver e-news you can use. Get practical business insurance insights in your inbox. 12,000+ people subscribe to our free ALIGNMENT Matters e-news. Just click the JOIN OUR DISTRIBUTION LIST button – at the bottom of our homepage – to connect and learn more about us.
365 | Get ALIGNED. Every day, Canadian business leaders follow our insurance insights via @ALIGNEDonRisk, on Facebook, LinkedIn and watch our YouTube videos here!