Mutual waiver of subrogation

A mutual waiver of subrogation is a provision in a contract where both parties agree to waive their rights to seek compensation from each other for losses covered by insurance. This clause is typically included to prevent litigation and ensure that claims are handled solely by the insurance providers, minimizing conflict between the contractual parties.

15 Mutual waiver of subrogation examples

  • Description
    MUTUAL WAIVER OF SUBROGATION   14. Notwithstanding anything in this Lease to the contrary, Tenant waives, and shall cause its insurance carrier(s) and any other party claiming through or under such carrier(s), by way of subrogation or otherwise, to waive any and all rights of recovery, Claim, action or causes of action against all Landlord Parties for any loss or damage to Tenant’s business, any loss of use of the Premises, and any loss, theft or damage to Tenant’s Property (including Tenant’s automobiles or the contents thereof), including all rights (by way of subrogation or otherwise) of recovery, Claims, actions or causes of action arising out of the negligence of any Landlord Party, which loss or damage is (or would have been, had the insurance required by this Lease been maintained) covered by insurance. In addition, Landlord shall cause its insurance carrier(s) and any other party claiming through or under such carrier(s), by way of subrogation or otherwise, to waive any and all rights of recovery, Claim, action or causes of action against all Tenant Parties for any loss of or damage to or loss of use of the building in which the Premises are located, any additions or improvements to such building, or any contents thereof, including all rights (by way of subrogation or otherwise) of recovery, Claims, actions or causes of action arising out of the negligence of any Tenant Party, which loss or damage is (or would have been, had the insurance required by this Lease been maintained) covered by insurance.
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    CleanCore Solutions, Inc. (ZONE)
  • Description
    1.3Mutual Waiver of Subrogation. Client and CBRE each hereby waives, for itself and its affiliates, right of recovery, and agrees that no third party shall have any right of recovery by way of subrogation, assignment or otherwise, against the other Party or its affiliates with regard to losses or claims insured against under this Agreement.
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    Altus Power, Inc. (AMPS)
  • Description
    14. MUTUAL WAIVER OF SUBROGATION. For the purpose of waiver of subrogation, the parties mutually release and waive unto the other all rights to claim damages, costs or expenses for any injury to property caused by a casualty of any type whatsoever in, on or about the Premises, the Building or The Park — Huntersville (f/k/a Huntersville Business Park) if such casualty or damage is covered under the terms of any policy of insurance required to be carried hereunder or otherwise actually carried by the party suffering such injury to property. All insurance policies carried with respect to this Lease, if permitted under applicable law, shall contain a provision whereby the insurer waives, prior to loss, all rights of subrogation against either Landlord or Tenant.
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    Ensemble Health Partners, Inc.
  • Description
    8.07.Mutual Waiver of Subrogation.  Any provision of this Lease to the contrary notwithstanding, Landlord and Tenant hereby release the other from any and all liability or responsibility to the other or anyone claiming through or under them by way of subrogation or otherwise from any and all liability for any loss or damage to the property of the releasing party to the extent that the releasing party’s loss or damage is insured under commercially available all risk property insurance policies, even if such loss or damage or legal liability shall be caused by or result from the fault or negligence of the other party or anyone for whom such party may be responsible and even if the releasing party is self-insured or the amount of the releasing party’s insurance is inadequate to cover the loss or damage or legal liability. It is the intention of the parties that Landlord and Tenant shall look solely to their respective insurance carriers for recovery against any such loss or damage or legal liability, without such insurance carriers having any rights or subrogation against the other party.
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    Embassy Bancorp, Inc. (EMYB)
  • Description
    18. MUTUAL WAIVER OF SUBROGATION   Provided that the following waivers do not invalidate any policy of insurance of the parties, now or hereafter issued, it being stipulated by the parties that the waiver shall not apply in any case in which the application thereof would result in the invalidation of any such policy of insurance, Lessor and Lessee hereby releases each other and the other’s employees, agents, customers and invitees from any and all liability for any loss of or damage or injury to person or property occurring, on or about the Premises, Building or Common Areas by reason of fire or other casualty which is insured against under a standard fire and special coverage insurance policy actually carried by a party to this Lease regardless of cause, including the negligence of the other party and its employees, agents, customers and invitees however, the release herein shall apply only to the extent of any recovery or to the extent recoverable from the insurance policies actually carried by a party to this Lease. To the extent possible without additional cost, each party further agrees that such insurance carried by either of them shall contain a clause whereby the insurance company waives its right of subrogation against the other party. Because the provisions of this Section 18 are intended to preclude the assignment of any claims mentioned herein by way of subrogation or otherwise to an insurance company or any other person, each party to this Lease shall give to each insurance company which has issued to it one or more policies of fire and special coverage insurance notice of the terms of the mutual release contained this Section 18 and have such insurance policies properly endorsed, if necessary, to prevent the invalidation of such insurance by reason of the provisions of this Section 18.
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    GOLDENWELL BIOTECH, INC. (GWLL)
  • Description
    Section 20.12.Mutual Waiver of Subrogation and Release: All policies of insurance required by the terms of this Lease to be carried by the Landlord or the Tenant shall include a waiver by the insurer of all right or subrogation against Landlord or Tenant in connection with any loss or damage thereby insured against. Neither party, nor its agents, employees or guests, shall be liable to the other for loss or damage caused by any risk covered within the scope of such insurance.
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    Third Harmonic Bio, Inc. (THRD)
  • Description
    c.MUTUAL WAIVER OF SUBROGATION. Each party waives, and shall cause its insurance carrier to waive, any right of recovery against the other for any loss of or damage to property which loss or damage is (or, if the insurance required hereunder had been carried, would have been) covered under the terms of any policy of property insurance, to the extent such releases or waivers are permitted under applicable law; provided, however, such waiver by Landlord shall not be effective with respect to Tenant’s liability described in the “Environmental Matters” Section below. The failure of a party to insure its property shall not void this waiver. For purposes of this subsection, (but subject to the terms of the Tenant’s Obligations subsection below), any deductible with respect to a party’s insurance shall be deemed covered by, and recoverable by such party under, valid and collectible policies of insurance.
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    AeroVironment Inc (AVAV)
  • Description
    Mutual Waiver of Subrogation. Lessor and Lessee each hereby releases the other, its officers, directors, employees, affiliated companies and agents, from any and all liability or responsibility (to the other or anyone claiming through or under them by way of subrogation or otherwise) for any loss or damage to property covered by insurance which either party is required to maintain under this Lease, even if such loss or damage shall have been caused by the fault or negligence of the other party, or anyone for whom such party may be responsible. However, this release shall be applicable and in force and effect only with respect to loss or damage occurring during such time as the releasor’s insurance policies shall contain a clause or endorsement to the effect that any such release shall not adversely affect or impair said policies or prejudice the right of the releasor to recover thereunder. Lessor and Lessee each agrees that any fire and extended coverage insurance policies will include such a clause or endorsement as long as the same shall be obtainable without extra cost, or, if extra cost shall be charged therefor, so long as the other party pays such extra cost. If extra cost shall be chargeable therefor, each party shall advise the other party of the amount of the extra cost, and the other party, at its election, may pay the same, but shall not be obligated to do so.
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    Arconic Rolled Products Corp
  • Description
    16. MUTUAL WAIVER OF SUBROGATION RIGHTS: Each party hereto hereby releases the other respective party and, in the case of Tenant as the releasing party, the other Indemnitees, and the respective partners, shareholders, members, agents, employees, officers, directors and authorized representatives of such released party, from any claims such releasing party may have for damage to the Building, the Premises or any of such releasing party's fixtures, personal property, improvements and Alterations in or about the Premises, the Building or the Real Property that is caused by or results from risks insured against under any fire and extended coverage insurance policies actually carried by such releasing party or deemed to be carried by such releasing party; provided, however, that such waiver shall be limited to the extent of the net insurance proceeds payable by the relevant insurance company with respect to such loss or damage. For purposes of this Section 16, Tenant shall be deemed to be carrying any of the insurance policies required pursuant to Section 15 even if not actually carried by Tenant, and Landlord shall be deemed to carry standard fire and extended coverage policies on the Real Property. Each party hereto shall cause each such fire and extended coverage insurance policy obtained by it to provide that the insurance company waives all rights of recovery by way of subrogation against the other respective party and the other aforesaid released parties in connection with any matter covered by such policy.
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    COMPASS Pathways plc (CMPS)
  • Description
    Mutual Waiver of Subrogation. If either party suffers loss or damage which is caused by the other party, but which is covered by the injured party’s insurance, the injured party waives any claim it might have against the other party to the extent that it is compensated by the insurance required under this Agreement; and each party agrees to obtain from its insurer a provision and acknowledgement of this waiver and an agreement that the insurance carrier will not be subrogated to the rights of the injured party to the extent that these rights have been waived above.
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    Syra Health Corp (SYRA)
  • Description
    ARTICLE 16   WAIVER OF CLAIMS; MUTUAL WAIVER OF SUBROGATION   Landlord and Tenant waive all rights of recovery against each other and the Additional Insureds for any loss, damages, or injury of any nature whatsoever to property for which the waiving party is required to be insured. In addition, each insurance policy carried by Landlord insuring the Real Property against loss by fire and causes covered by standard extended coverage, and each insurance policy carried by Tenant and insuring the Premises and its fixtures and contents against loss by fire and causes covered by the policies required herein shall be written in a manner so as to provide that the insurance company waives all right of recovery by way of subrogation against Tenant or Landlord, respectively, in connection with any loss or damage covered by such policies. If the release of either Landlord or Tenant, as set forth in the second sentence hereof shall contravene any Law with respect to exculpatory agreements, the liability of the party in question shall be deemed not released but shall be deemed secondary to the latter’s insurer.
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    INTERCEPT PHARMACEUTICALS, INC.
  • Description
    21.    Waiver of Subrogation.  Notwithstanding any other provision of this Lease to the contrary, Landlord and Tenant each hereby waive all rights of recovery against the other on account of loss or damage occasioned to such waiving party for its property or the property of others under its control by any peril that is required to be insured against under the terms of this Lease, or is otherwise insured against under any insurance policies which may be in force at the time of such loss or damage (or represents the deductible under such policy), even if such damage may have been caused by the negligence of the other party, its agents or employees. Tenant and Landlord shall, upon obtaining policies of insurance required hereunder, give notice to the insurance carrier that the foregoing mutual waiver of subrogation is contained in this Lease and Tenant and Landlord shall cause each insurance policy obtained by such party to provide that the insurance company waives all right of recovery by way of subrogation against either Landlord or Tenant in connection with any damage covered by such policy.
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    IGM Biosciences, Inc. (IGMS)
  • Description
    Mutual Waiver of Subrogation: To the extent permitted by law and provided the same does not invalidate or diminish any insurance required to be carried hereunder, Landlord and Tenant each agree to cause to be included in their respective policies of fire and extended coverage insurance the agreement of the issuer thereof that said policies shall not be invalidated by a waiver of claim by the insured against Landlord or Tenant, as the case may be, and each will furnish evidence thereof to the other. In addition to any other waiver herein, Landlord and Tenant each hereby waive any claim against the other for any property loss resulting from any cause, including the negligence of the other, to the extent of the insurance proceeds available therefor. All property insurance policies carried by either party covering the Leased Premises, including, but not limited to, contents, fire, and casualty insurance, shall, to the extent permitted by law, expressly waive any right on the part of the insurer against the other party. The parties hereto agree that their policies will include such waiver clause or endorsement so long as the same shall be obtainable without extra cost, or, if extra shall be charged therefor, so long as the party whose insurance carrier charged the additional cost pays such extra cost. The failure of any insurance policy to include such waiver clause or endorsement shall not affect the validity of this Lease.
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    FAST CASUAL CONCEPTS, INC. (FCCI)
  • Description
    11.6      MUTUAL WAIVER OF SUBROGATION The parties hereto shall each procure an appropriate clause in, or endorsement on, any property insurance policy maintained or required to be maintained by the parties hereunder on the Property, Premises or any personal property, fixtures or equipment located thereon or therein, pursuant to which the insurer waives subrogation or consents to a waiver of right of recovery in favor of either party, its respective agents or employees. Having obtained such clauses and/or endorsements, each party hereby agrees that it will not make any claim against or seek to recover from the other or its agents or employees for any loss or damage to its property or the property of others resulting from fire or other perils covered by such property insurance regardless of the cause or origin of such loss or damage, including, but not limited to, the negligence of such other party or its agents or employees.
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    MANNKIND CORP (MNKD)
  • Description
    Mutual Waiver of Subrogation: Notwithstanding any other provision of this Lease or the Addendum to the contrary, Tenant and Landlord hereby mutually waive their rights for recovery against each other for any loss of or damage to the property of either party, to the extent such loss or damage is insured by any insurance policy required to be maintained by this Lease or otherwise in force at the time of such loss or damage. Each party shall obtain any special endorsements, if required by the insurer, whereby the insurer waives its right of subrogation against the other party hereto. The provisions of this Subparagraph 8.D shall not apply in those instances in which waiver of subrogation would cause either party’s insurance coverage to be voided or otherwise made uncollectible.
    Document
    Sumo Logic, Inc.

What is a Mutual Waiver of Subrogation?

A Mutual Waiver of Subrogation is an agreement between two parties to waive their respective rights to pursue subrogation claims against each other’s insured losses. Subrogation refers to the right of an insurance company to pursue a legal claim against third parties that may have caused insurance loss to their insured. By agreeing to a mutual waiver, both parties acknowledge that they will not hold each other responsible for any insured loss and will not involve each other’s insurers in claims.

When should I use a Mutual Waiver of Subrogation?

A Mutual Waiver of Subrogation is often used in situations where parties wish to maintain goodwill and avoid potential legal disputes over insured losses. It is commonly found in contracts involving:

  • Construction projects: To prevent litigation and promote cooperation among contractors, subcontractors, and property owners.
  • Commercial leases: To simplify claims by ensuring that insurers handle insured losses without recourse to other parties in the lease.
  • Joint ventures: To foster a spirit of collaboration and avoid disputes between partners.

It should be used when ensuring that insurance policies are the sole remedy for losses is more beneficial than potential legal actions and disputes.

How do I write a Mutual Waiver of Subrogation?

When drafting a Mutual Waiver of Subrogation, ensure the following elements are included:

  1. Clear language stating that both parties waive their rights to subrogate against each other.
  2. Identification of the parties and their insurers, if relevant.
  3. Scope and limitations of the waiver, including specifying the types of losses or claims involved.
  4. Effective date and duration of the waiver.
  5. Confirmation and acknowledgment that the waiver is understood and agreed upon by both parties.

An example clause might look like:

“Each party hereby waives any right of subrogation against the other party regarding any loss or damage covered by insurance. This waiver shall include a waiver of the insurance company’s rights to seek reimbursement through claims or legal actions against the other party.”

Which contracts typically contain a Mutual Waiver of Subrogation?

Contracts that frequently include a Mutual Waiver of Subrogation include:

  • Construction agreements, such as general contracts or subcontractor agreements.
  • Real estate leases for commercial properties.
  • Business collaboration contracts like joint venture agreements.
  • Professional service agreements where both parties maintain separate insurance policies.

Incorporating this clause into contracts helps streamline processes and promotes efficient handling of insured losses while minimizing potential legal conflicts between parties.

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