Section 11.27 Waiver of Subrogation

• Library: Construction Law 2016 Supp

G. (§11.27) Waiver of Subrogation

Subrogation is one party’s right, in a legal sense, to “step into the shoes” of another party. Waiver of subrogation clauses are designed to minimize the potential for numerous lawsuits, cross-suits, and counter-suits. They prevent insurers from suing various parties to construction contracts. The provisions allocate risk of loss among the contracting parties. Courts generally hold that, because an insurer’s rights as the subrogee are subject to all...