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Business owners often agree to waivers of subrogation clauses if they see that to do otherwise would result in lengthy litigation that would cause even greater financial losses due to the need to halt projects until any lawsuit is settled.

“Subrogation” simply means to stand in for another regarding a legal right or a claim. And if you have a waiver of subrogation in your commercial insurance policy, your insurance company cannot “stand in” for you and seek damages from other parties after paying for your claim.

Waivers of subrogation are intended to protect each party from claims by the other; additional insured status is protection against third party claims.

One key point in assembling a liability tower is which policy is listed as the controlling underlying insurance. That governs which policy form is being followed by the next higher policy. That controlling underlying policy dictates how the higher policy behaves. Most excess policy forms may need modifications.

A waiver of subrogation agreed to by the owner for the contractor/subcontractor's benefit prevents the insurer from stepping into the shoes of the owner to sue the steel subcontractor to recover the money the insurer paid to the owner.

You are waiving your insurance company's right to subrogate against another party. Most commonly it's the party you are entering into a contract or agreement with. Transfer of Recovery Against Others to Us is another phrase used in some policies that are similar to Waiver of Subrogation Rights.

In summary, Follow Form is a type of insurance coverage that is designed to supplement a primary policy. It is a type of coverage that is provided on an excess basis, meaning that it provides coverage on losses that are not covered by other policies.