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

A waiver of subrogation is a provision in a construction contract that prevents a party from making a claim against another party for any losses that it incurs as a result of the work of the other party. In Washington, waiver of subrogation is necessary when a contractor or other party needs to be protected from potential losses caused by the other party. For example, if the contractor is hired to build a home and the homeowner fails to pay for the work, the contractor may be able to make a claim against the homeowner’s insurance policy for the unpaid amount. If a waiver of subrogation is included in the contract, the contractor will be prevented from making this claim, so it’s important to make sure that the right waiver is included in the contract. Additionally, it’s important to make sure that both parties are aware of the waiver, as it could restrict the rights of one of them in the event of any losses they incur as a result of the other’s work. Waiver of subrogation is an important part of any construction contract in Washington and should be discussed and agreed upon before any work is carried out.

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

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