Waiver of Subrogation

A contractual provision in which the insurer agrees to give up its right to pursue a third party that caused a loss to the insured. In the law firm context, waiver of subrogation may be requested in office leases or service agreements. For malpractice insurance, subrogation waivers are less common but may arise when multiple attorneys share liability for a claim. The waiver prevents the carrier from recovering its payment from the third party after settling the insured's claim.