how does the waiver of subrogation process work 
upon a loss an insurer pays a claim to the insured for covered losses if the loss was caused by a third party the insurer may subrogate the claim or recover damages from the party that caused the loss with a waiver of subrogation the insurer cannot pursue or sue the responsible third party for recovery these provisions can be found in contracts or included as addendums to existing contracts as with any contract there must be an agreement by the parties to the contract to be valid the bottom linea waiver of subrogation is a legal endorsement that prevents an insurer from recovering the money they ve paid out on a claim from a negligent third party this avoids lengthy and costly legal disputes that could arise in the course of contracted activities like letting a property or subcontracting construction work 