In CGL, what is the purpose of a Waiver of Subrogation endorsement?

• A. It increases premiums
• B. It creates additional insured status
• C. It prevents insurer from pursuing recovery from a specific party after a loss
• D. It adjusts limits

Answer: (C)

This item tests understanding of a Waiver of Subrogation in a CGL policy. Subrogation is the insurer’s right to recover a paid claim from the party responsible for the loss. A Waiver of Subrogation endorsement removes that right against a specific third party after a loss, to protect that party from being sued by the insurer. This is often used to maintain business relationships or satisfy contract terms with clients, owners, or contractors who may be at fault. It does not itself create additional insured status, nor does it directly change premiums or policy limits.