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Waivers of subrogation are an important detail of Certificates of Insurance (COI) that cannot be ignored.  However, they’re often misunderstood and are even harder to keep track of.  In essence, waivers of subrogation are an agreement between the insured and the insurer stating that (in case of an incident) the party at fault cannot be approached for amends.  To get a better understanding on waivers of subrogation, it would be prudent to understand exactly what subrogation is and how it works.

What is a Waiver of Subrogation?

To begin with, we’ll use a minor car accident (with no injuries) as an example.  Both of the parties are covered by insurance, but only one of the parties is at fault for the accident and damages incurred.  The party that sustained the damage is reimbursed by their insurance company.  In order for the insurance company to not lose any money on an incident that they are not liable for, they approach the at-fault’s insurance company to become reimbursed.  Subrogation refers to the act of the insurance company standing in and handling the monetary matters for the guilt-free party.

This means that waivers of subrogation prevent insurance companies from approaching the at-fault party for reimbursement, and instead, they incur a loss.  Because a waiver of subrogation creates more risk for the insurance company, they often charge a premium for it to be included unto the policy.  Still, the benefits of a waiver of subrogation cannot be ignored.  Two parties that operate under a waiver of subrogation are entering into a mutual agreement that prevents either of them from creating a lawsuit against the other party.  Simply put, it creates an amicable environment where both parties agree that they will not press charges on the other, and in doing so, they prevent the insurance companies from doing the same.

How to Determine Who Carries a Waiver of Subrogation

However, not all companies carry a waiver of subrogation, which is why it’s such an important item to keep track of in Certificates of Insurance.  COIs are typically required as proof of insurance for contractors in the event that they are hired for a job, so that both parties understand the liability involved.  Knowing whether or not the contractor carries a waiver of subrogation is a critical piece of information that needs to be disclosed before the start of a contract.  For those using a manual filing system for COIs, it can be difficult to keep track of which contractors operate under a waiver of subrogation.

Using an automated solution like CTrax prevents any confusion over this matter, and enables the contractee to quickly and easily determine the details of coverage in an instant.  CTrax provides a comprehensive overview of all critical information so that the user can understand everything they need to with a quick glance.  Plus, waivers of subrogation can be specifically searched for within the solution’s global search bar, enabling a convenient overview of all vendors who carry the clause.  To make things even sweeter, CTrax eliminates paper from the equation, and finally allows users to go green.  Reach out to JDi Data to learn more about Certificates of Insurance, waivers of subrogation, and how our solutions can specifically help you at