Construction contracts frequently include a provision calling
for a contractor or subcontractor to waive subrogation rights. If
such a waiver remains in a contract, the party providing the waiver
strips its insurance carrier from potentially recovering payment
for the claim.
Given the frequent inclusion of waivers of subrogation in
construction contracts, it is important to understand the legal
concept of subrogation and potential effect of a waiver of
subrogation clause. However, these waivers may vary and how to
approach them depends on how a waiver may be applied in the
In its simplest form, subrogation is the right of one party to
"stand in the shoes" of another party to enforce the first party's
rights by bringing a legal claim. When discussing subrogation,
specific terminology often is used to describe the parties and
concepts involved. The "subrogee" is the party that seeks to
enforce the rights of another party through subrogation. The
"subrogor" is the party whose rights are being...
Log in or register for FREE access to this article and other Professional Roofing online content.