Which endorsement is used to prevent subrogation claims against a party, typically due to contract requirements?

• A. Newly Acquired Organizations
• B. Waiver of Subrogation
• C. Additional Insured
• D. Primary & Noncontributory

Answer: (B)

Waiver of subrogation is used when a contract requires that one party not be pursued for recovery after a loss. After the insurer pays a claim, it normally has the right to step in and recover those costs from the party responsible for the damage. A waiver of subrogation ends that right for the specified party, so the insurer won’t sue or seek compensation from them. This protects business relationships in contracts such as leases, construction agreements, or vendor arrangements, where the other party may not be liable or where subrogation could disrupt the relationship.

This endorsement is often mutual or may be specific to certain parties, and it can be a condition for approving the contract. It’s different from adding someone as an Additional Insured, which extends coverage; from naming newly acquired organizations, which expands coverage to new entities; or from Primary & Noncontributory language, which affects how losses are paid among multiple policies but doesn’t waive subrogation rights.