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Insurance Subrogation Waiver?

Discussion in 'Business Fundamentals' started by hairygary, Dec 18, 2009.

  1. hairygary

    hairygary Senior Member
    Messages: 149

    Ok, so the only one of my properties I am doing for a management company, is now requesting a insurance subrogation waiver. They stated they called my insurance and my insurance refused to add the subrogation waiver. Now they are asking me to sign the subrogation waiver that holds me accountable. They told me "if I cant carry it on my insurance then they will hold me personally responsible for any accidents occuring from my work on the site, which ultimately goes back to my insurance." I spoke with my insurance who told me that they do not waive subrogation, because that is the risk the company takes to subcontract the property out. My insurance told me it would not void my policy if I did sign a subrogation waiver myself.

    I have mixed feelings about this, part of me thinks this is BS as i already added them as additional insured on my policy, while the other part of me thinks while since I am the only one servicing the property I should assume the responsibility.

    Just to have all the facts, the property is a abandoned commercial building, about 1 acre of plowable area, which can be done in under an hour. It is a seasonal contract with salt and a 1.5" trigger, which will pay pretty good.

    Sorry for the long post, but I am curious of others opinions on this, as I have never done work for management companies, I have all my own contracts, but this site was right in the middle of all my others, so it would work out well. Just to make it clear it is not USM.
  2. heather lawn spray

    heather lawn spray PlowSite.com Addict
    Messages: 1,206

    Subrogation is a right that the insurer will take on when they have paid out a claim on your behalf. for example: If somebody backs into your truck and you have collision coverage, the insurer will pay out the claim for you, fix your truck and then go after the guy who backed into you, to collect it back. If the abandoned property owner screws up the property and somebody gets hurt on the property you could be held liable for the damage/injury that happen to the innocent person. If your insurer signs the subrogation waiver then they can't get back at the person (the property owner in this case) who caused the damage, and the insurer has to swallow the loss alone. (Insurers don't like to swallow the loss alone). You have no right to sign the waiver of subrogation, that right belongs to the insurer and not to you. (you can't sign away someone else's rights, they're not your rights to give away). The property owner's appear to want to avoid maintaining the property in a safe condition and any problems with it and snow & ice are to be dumped on you. For example: if a piece of the building that is covered in ice falls on someone walking across the parking lot while you are not there, you ( and your insurer) could be held liable with no recourse against the building owner for not keeping the building repaired

    Now, if they want to be added as an 'ADDITIONAL INSURED' this gives them the same rights as you do under the policy. This is the sole descrection of the insurer. The insurer can extend the coverage to the property owner. The insurer could only use the subrogation against it's own insured if you did something against the terms of the policy. For example If you drive drunk and hit someone your insurer will pay on your behalf to help out the injuried person, but they will turn around and collect it back from you. A waiver of subrogation gives the property owner greater rights than you do under your policy. If the property owner does something criminal that causes injury/damage to someone else the insurer can come after you but not after the property owner

    Check with your broker and a lawyer before proceeding on this one. It could be ok or you could be trapped covering someone else's problem
    Last edited: Dec 20, 2009