In the early nineties Waiver of Subrogation clauses began to appear. ISNetworld® is no stranger to these contracts. ISNetworld® introduced Waiver of Subrogation requirements into its network that allows hiring clients to set up Waiver of Subrogation parameters within their own company profiles. This Waiver of Subrogation feature allows any participating insurer to exclude loss settlement costs from an insured’s policy so they would not have to pay them. Are you having trouble with this, by chance?
The purpose for a Waiver of Subrogation clause is to reduce an insurer’s exposure under an insurance contract by avoiding having the insurer directly pay out funds and then go after another party who was at fault.
The Waiver of Subrogation clause must be carefully drafted to achieve the insurer’s desired goal as stated in its Waiver of Subrogation wording. The Waiver of Subrogation policy must give insurers enough protection so they can still pursue their insured for claims and damages, even if it means pursuing them from the proceeds received from the third party at fault.
Waiver of Subrogation causes a waiver by a company that has paid for damages to an insured to another company that may have caused those same damages.
From a contractor’s perspective, when dealing with ISNetworld® and your insurance requirements, there are many things to take into consideration. Does the Waiver of Subrogation require blanket coverage? How much is the insurance company charging to add the endorsement? What is the added liability on my part? Is my contract worth the extra liability and cost? Many things to take into consideration and making a decision is just half the battle.
Now that you’ve decided to add the waiver on your policy, now comes the tricky part. Making sure the waiver is evidenced correctly can be a lengthy tedious process. Some clients want to see the full endorsement forms others will accept vague verbiage on the accord form. You must read those requirement sheets carefully and make sure the insurance company understands them as well. Wondering how to make this process as seamless as possible? We have helped thousands of clients with our maintenance program and have the experience and expertise to get it right the first time. Give us a call at 866-627-3850 or email us at sales@jjsafetyllc.com.
Now maybe you’ve decided that you are not going to add a waiver of subrogation. ISNetworld® will not automatically deny you in this case. They have an option to apply for a variance. You can apply for a variance, but it is ultimately the choice of your hiring client whether to grant this variance or not. This is another area, where you might want to get some help. The variance process can be very lengthy if you’re not sure what to do. I’ve seen a variance sit in a pending status for months. We have experience of communicating with many hiring clients and helping to speed up the process.
Ultimately, be aware of what the waiver of subrogation is. Make sure you consider what it means to the policy in which it is required. Make a decision of whether to add it or not. Know if you are prepared for the next steps, no matter what your decision was. If needed, give us a call and we’ll help you with the process. And above all, be prepared for the final outcome, no matter what it is.