01 / The meaning
What it means.
A waiver of subrogation or recovery rights can appear in a lease, construction contract or policy endorsement. It may prevent an insurer from pursuing a party that caused a loss, depending on the terms and law. This is different from a general indemnity or an agreement to name someone as an additional insured. The exact parties, activities and losses covered by the waiver matter.
Before signing, compare the proposed waiver with the policy’s recovery and contractual-liability provisions. Insurer agreement may be needed, and an informal statement should not be treated as equivalent to a written endorsement. Whether conduct amounts to a legal waiver in a dispute is a separate issue requiring analysis of the facts. Preserve correspondence and avoid assuming that silence or delay necessarily means a contractual right has been abandoned.
02 / Put it in context
A practical example.
Hypothetical example: a tenant is asked to waive recovery against its landlord for certain property losses. It sends the proposed lease clause to its broker and obtains legal advice before signing, checking both insurance acceptance and the rights it would give up.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Identify exactly who gives up which right and for whose benefit.
- Check policy requirements for insurer consent and any resulting endorsement.
- Keep the agreed wording and avoid relying on informal assurances about recovery rights.
04 / Start a useful conversation
A question for your broker.
What right would this waiver remove, and has its effect on our insurance and contracts been reviewed?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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