Does anyone know what a Waiver of Subrogation is

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oscarcolumbo

Member
Location
Florida
I have a general contractor who’s requiring this on one of the jobs. I’m kind of nervous since I don’t know what it means and it says waiver. Usually they just want me to add them as a certificate holder.


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gadfly56

gadfly56

Senior Member
Location
New Jersey
Occupation
Professional Engineer, Fire & Life Safety
oscarcolumbo said:
I read that article earlier, but I still don’t know what it means. It stops my insurance carrier from suing theirs?


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Think of it as no-fault insurance for contractors. Your insurance pays for your damages and the other guy's pays for his.

As mentioned, run this by your lawyer, but even more important, run it by your insurance company. If someone really screws up on the site and your insurance company pays out for damages you suffered, that's a risk for them. They're not going to carry that risk out of the goodness of their heart. They will likely want you to pony up some kind of rider for that job. You should build the price of that rider into your bid.
 
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oscarcolumbo

Member
Location
Florida
gadfly56 said:
Think of it as no-fault insurance for contractors. Your insurance pays for your damages and the other guy's pays for his.

As mentioned, run this by your lawyer, but even more important, run it by your insurance company. If someone really screws up on the site and your insurance company pays out for damages you suffered, that's a risk for them. They're not going to carry that risk out of the goodness of their heart. They will likely want you to pony up some kind of rider for that job. You should build the price of that rider into your bid.
Click to expand...

The thing is that I’m halfway through the rough in phase and now they want this.


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kwired

kwired

Electron manager
Location
NE Nebraska
gadfly56 said:
Think of it as no-fault insurance for contractors. Your insurance pays for your damages and the other guy's pays for his.

As mentioned, run this by your lawyer, but even more important, run it by your insurance company. If someone really screws up on the site and your insurance company pays out for damages you suffered, that's a risk for them. They're not going to carry that risk out of the goodness of their heart. They will likely want you to pony up some kind of rider for that job. You should build the price of that rider into your bid.
Click to expand...

oscarcolumbo said:
The thing is that I’m halfway through the rough in phase and now they want this.


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I have to admit I never heard that term either, but if gadlfy is correct, seems like you should have already have a contract in place, adding this seems not only should you talk to a lawyer and/or the insurance company, but also should have the right to change contract price if necessary since it wasn't in original contract.
 
gadfly56

gadfly56

Senior Member
Location
New Jersey
Occupation
Professional Engineer, Fire & Life Safety
oscarcolumbo said:
The thing is that I’m halfway through the rough in phase and now they want this.


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Tell them politely to pound salt. They cannot demand a change to the contract once work commences. If they say, "We forgot", say "Next time you won't. See earlier response." Or say "Sure, here's my price to cover the new risk you're asking me to assume."

Remember, if you sign the waiver without consulting your insurance carrier, they may refuse to cover any loss on this job, no matter who's at fault. If you're thinking about signing, absolutely give them a call.
 
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zbang

Senior Member
Location
Roughly 5346 miles from Earls Court
oscarcolumbo said:
Great.... I don’t even KNOW a lawyer.
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:D they can be handy people.

Pretty much every county bar association in the country has a lawyer-referral service; for maybe $25 you can talk to a someone who knows that area of the law to see if you have a case/concern and whether you like them.

Even if you never have to use one, it's good to have an established relationship before you need it. Think of it this way- most people who do service won't take new clients when their workload is really high, but they will try to fit an existing client in if the work will be quick. Be that existing client.
 
Fulthrotl

Fulthrotl

~Autocorrect is My Worst Enema.~
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HB, CA (19 Hrs. 22 Min. from Winged Horses)
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oscarcolumbo said:
The thing is that I’m halfway through the rough in phase and now they want this.
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so, you have a signed contract, correct? you wouldn't have started
without one.

it waives your insurance companies right to collect if there is a claim.
your insurance company would have to waive THEIR right to this.

don't sign it. you have a contract. you've started work.

forward it to your insurance company.
 
I

Ingenieur

Senior Member
Location
Earth
get a legal consult

both parties may not be subject to it
it may only apply to you
you waive the right to go after their insurance
they may be able to go after yours

usually contracts must be equitable
if you give up something they must also
talk to a lawyer
talk to your insurer, they will not like or you may be required to notify them
if you don't they may deny coverage
they may require a rider, additional coverage

think about it
it could be their fault, cost you money, and you can't recover from them
you must use yours, and they may deny
 
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JoeyD74

Senior Member
Location
Boston MA
Occupation
Electrical contractor
Ingenieur said:
get a legal consult

both parties may not be subject to it
it may only apply to you
you waive the right to go after their insurance
they may be able to go after yours

usually contracts must be equitable
if you give up something they must also
talk to a lawyer
talk to your insurer, they will not like or you may be required to notify them
if you don't they may deny coverage
they may require a rider, additional coverage

think about it
it could be their fault, cost you money, and you can't recover from them
you must use yours, and they may deny
Click to expand...

It will cost money, much like a bond would for a specific job.
 
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