Waiver of Subrogation clauses are contained in nearly every form construction contract. Contractors sign them as a matter of course, but how often do you actually consider what it means to waive subrogation? In this blog, we’ll discuss what subrogation is and why it’s usually a good idea to waive it. What is Subrogation? Legally speaking, subrogation is a concept that allows an insurance company that has paid a loss [...]
The Anti-Subrogation Rule I know, my dear students, that you are clamoring for more obscure insurance coverage tidbits and I am here to deliver. Our rule for today: anti-subrogation. The short form is this – an insurance company cannot subrogate against its own insured. This means that an insurer cannot look to its own policyholder to satisfy or to repay the loss that the insurer has covered. The reasons behind this [...]
THE BOTTOM LINE: An excess carrier has five viable claims against the primary carrier. Both a primary and excess insurer contract with a policyholder for coverage, but they do not contract with each other. Despite this lack of privity, when a verdict is rendered that exceeds the primary coverage, what claims can an excess insurer make against the primary insurer in order to avoid coverage? 1. Breach of implied duty of [...]
