Waiver of Subrogation
What Is a Waiver of Subrogation?
A waiver of subrogation is an agreement in which your insurance company gives up its right to recover costs from another party after paying for a covered claim. It is a normal requirement for contracts with landlords, facilities, or business partners, and you can often request one through your insurer.
What It Means for You
The term waiver of subrogation comes up in contracts and insurance, so it’s important to know:
- It affects an insurer’s ability to recover money from another person or business after a claim
- It may be required before you can rent space, work in a facility, or partner with another pet care pro
- It does not expand your coverage to another person or business
- Understanding it helps pet care professionals avoid signing confusing contract language
What Is a Waiver of Subrogation in Insurance?
Insurance companies have a right of recovery (aka subrogation), which means they can try to recover money from a responsible third party after paying for a claim. Some contracts require your insurer to waive that right to help manage the risks of working with your business or being sued.
A waiver of subrogation means your insurer agrees to give up that recovery right in certain situations. It is a type of endorsement (or change made to your policy) that affects your insurer’s claims rights, not necessarily your coverage.
Why Would Someone Ask for a Waiver of Subrogation?
Landlords, venues, or business partners might ask you to include a waiver of subrogation with your insurance because they don’t want your insurer coming after them later. It’s a useful way to manage risks and reduce disputes between parties after a covered loss or claim.
What Is an Example of a Waiver of Subrogation?
To see how this works in real life, consider the following pet care business example of a waiver of subrogation:
| Pet Business Example | Without a Waiver | With a Waiver |
|---|---|---|
|
A groomer rents salon space and causes a covered loss
|
The insurer pays the claim, then may try to recover costs from the salon if it shares fault |
The insurer pays the claim and agrees not to sue the salon to recover costs |
|
A pet sitter signs a contract with a partner and causes an accident
|
The insurer pays the claim, then may seek reimbursement from the partner business if at fault
|
The insurer pays the claim and agrees not to chase the partner for reimbursement
|
Pet Business Example
A groomer rents salon space and causes a covered loss
Without a Waiver: The insurer pays the claim, then may try to recover costs from the salon if it shares fault
With a Waiver: The insurer pays the claim and agrees not to sue the salon to recover costs
Pet Business Example
A pet sitter signs a contract with a partner and causes an accident
Without a Waiver: The insurer pays the claim, then may seek reimbursement from the partner business if at fault
With a Waiver: The insurer pays the claim and agrees not to chase the partner for reimbursement
Does a Waiver of Subrogation Mean More Coverage?
A waiver of subrogation does not mean more coverage. Instead, it is an endorsement that changes your insurer’s recovery rights on your policy. It does not affect the amount of coverage you have or who’s covered by your policy.
Why Does A Waiver of Subrogation Matter for Pet Care Businesses?
Pet professionals may see a request for a waiver of subrogation when:
- Renting work space
- Using client or venue property
- Signing partner agreements
- Being asked for a Certificate of Insurance (COI) to meet contract requirements
Just like you might ask a client to sign a liability waiver to help manage your business’s risk, a landlord, venue, or partner might ask you for a waiver of subrogation to manage theirs.
Big Takeaway
A waiver of subrogation affects how a claim is handled after a loss and whether your insurer can recover money from another party. Understanding what it means helps pet care professionals read contracts more confidently and ask smarter insurance questions before agreeing to something they’re not comfortable with.
Keep Sniffing Around
- Additional insured
- Damage to premises rented to you
- Primary and non-contributory
- Risk management
- Transfer of risk
Kyle Jude | Program Manager
Kyle Jude is the Program Manager for PCI, where he helps design and maintain liability coverage specifically for pet professionals. With 10+ years of insurance industry experience, he works closely with carriers, underwriters, and compliance teams to ensure PCI coverage stays accurate, responsive, and relevant to real-world risks. At home, he puts that same expertise to use wrangling his four beloved dogs
Kyle Jude is the Program Manager for PCI, where he helps design and maintain liability coverage specifically for pet professionals. With 10+ years of insurance industry experience, he works closely with carriers, underwriters, and compliance teams to ensure PCI coverage stays accurate, responsive, and relevant to real-world risks. At home, he puts that same expertise to use wrangling his four beloved dogs