What is a waiver of subrogation?

A waiver of subrogation is a legal document that states the parties involved in an insurance claim agree to waive their right to pursue legal action against each other in the case of property damage or injury. In Mississippi, this type of waiver is used in both personal and commercial insurance situations. In a personal setting, it is typically associated with renters insurance policies. In a business context, a waiver of subrogation is a contractual agreement between two parties in which one party agrees to waive their legal right to pursue damages from the other when a third-party is responsible for the damage or injury. In this situation, the insurance company will usually reimburse the party who suffered the loss and then take legal action against the third-party who is ultimately responsible. The purpose of a waiver of subrogation is to reduce the overall cost of insurance claims. Without this waiver, insurance companies would be required to pay both parties’ claims, which could strain the insurer’s resources and increase the cost of doing business. In Mississippi, laws governing the use of waiver of subrogation are in place to help ensure that insurers’ resources are not overextended and that costs to businesses and individuals are kept to a minimum.

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What is a waiver of subrogation?

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