What is a waiver of subrogation and when is it necessary?

A waiver of subrogation is an agreement between two parties that waive or give up their right to seek reimbursement of damages from each other. This waiver is important in the context of construction law in North Carolina. It is most commonly used when two parties, such as a contractor and a property owner, enter into a contract. The waiver of subrogation is necessary when the parties involved want to protect each other’s assets in the event that a dispute arises. For example, if one party is found liable for damages to the other party’s property, the waiver of subrogation helps to ensure that the damages are not recovered from either party’s insurance company. In other words, both parties agree to assume their own risk of potential damage. The waiver of subrogation is also important for contractors in North Carolina. When a contractor enters into a contract with a property owner, the contractor may be required to obtain a waiver of subrogation as protection against any potential damages caused to the property by the contractor. Without this waiver of subrogation, the property owner may make a claim on the contractor’s insurance if there is an issue with their work. Overall, a waiver of subrogation is an important concept related to construction law in North Carolina. It is necessary when two parties want to protect each other’s assets in the event of a dispute, and it is also important to contractors who may be required to obtain a waiver of subrogation from a property owner in order to protect against potential damages.

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What is a waiver of subrogation and when is it necessary?

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