In an insurance contract, a clause that prevents subrogation actions is best described as?

• A. Waiver of Subrogation
• B. Subrogation Endorsement
• C. Deductible Endorsement
• D. Additional Insured Endorsement

Answer: (A)

Subrogation is the insurer’s right to step into the insured’s shoes and recover what they paid from the party responsible for the loss. A clause that prevents subrogation actions is called a waiver of subrogation. It means the insurer agrees not to pursue recovery from the other party named in the waiver, which helps protect business relationships and keep projects or leases from being disrupted by cross-claims. These waivers are common in contracts between owners, contractors, landlords, and tenants, and they can be mutual or one-sided. They’re usually added as endorsements on liability or property policies and may require the other party to carry their own insurance or provide evidence of coverage. The other endorsements described—preserving the insurer’s right to sue, changing deductibles, or adding an insured—do not describe the act of waiving subrogation, which is why this term fits best.