Waivers of Subrogation

The regular review of every contract you sign is a highly important risk management task. This includes a contract’s waiver of subrogation clause.

Subrogation is a basic insurance concept used in insurance contracts. If a loss occurs, it typically happens through someone’s negligence. In general, the negligent or “at fault” party is liable for the cost of the loss; your insurance carrier can then choose to sue the at-fault party to recover the amount of a claim they paid for you in a process known as subrogation. You may not find the term subrogation in your contract, but it may be included—check for the terminology ”Transfer of Rights of Recovery Against Others to Us,” which some insurance policies use in place of subrogation.

When a waiver of subrogation is required in a contract, it means that you are waiving your insurance company’s right to subrogate against another party, most commonly the party you are in under contract with. Most policy contracts, with the exception of workers’ compensation, allow you to waive your rights of subrogation as long as it is done in writing and prior to the loss. Often an endorsement is added specifically referring to the exact contract as a means of clarification. However, there are associated risks:

  • In some jurisdictions, waivers of subrogation are not available. Therefore, a careful review of the state statute is required.  You should also obtain your workers’ compensation carrier’s position and agreement on waivers of subrogation.
  • Waiver of subrogation requirements should be built into a contract. The contract wording should be thoroughly reviewed to ensure the waiver of subrogation is being utilized appropriately for the situation. For example, mutual waivers may be beneficial in landlord/tenant contracts, where all parties waive their rights. However, in construction contracts, mutual waivers may not be acceptable or prudent.

The Value of Waiver of Subrogation Clauses

A waiver of subrogation clause is placed in a contract to minimize lawsuits and claims between the parties. The risk, once assigned to the insurers by the parties, is determined to stop there, without allowing the insurer to seek costs from a third party. This guarantees that if a loss occurs, the owner’s insurer pays the claim and the insurance proceeds can be used to fund the cost of repairs without determining who was at fault. Without a waiver of subrogation, litigation or arbitration is frequently needed to determine whose fault caused a loss, which can lead to long and costly delays.

Reviewing Contracts

It’s important that all contractual language mirrors your policy. As your insurance partner, we are committed to helping you understand how your policy language impacts your contractual risks. Call Tooher-Ferraris Insurance Group today to learn more about how we can assist you in mitigating your contract exposure.

OSHA Standards

2018 Most Frequently Cited OSHA Standards

OSHA recently unveiled its top 10 most frequently cited standards. The agency reports the leading causes of workplace injuries during its fiscal year (October through the following September) to help businesses identify common safety pain points.

The 2018 top 10 list of most frequently cited standards didn’t change significantly from 2017, with fall protection violations staying on top of the list. In fact, the top seven standards remained the same. Read below to learn more details on the top 10 most cited OSHA standards.

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Workplace Safety Regulation

Workplace Safety Regulation

This Workplace Safety Regulation manual will serve as a guide to some general federal OSHA standards as well as some Connecticut workplace safety laws that fall outside of the scope of the federal OSHA program. This guide is not meant to be exhaustive or construed as legal advice, but will be a helpful tool in complying with your general employer workplace safety and health responsibilities. Continue reading “Workplace Safety Regulation”

Benefits of Cyber Liability Insurance

When cyber attacks like data breaches and hacks occur, they can result in devastating damage. Businesses have to deal with business disruptions, lost revenue and litigation. It is important to remember that no organization is immune to the impact of cyber crime. As a result, cyber liability insurance has become an essential component to any risk management program.

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Winter Storm Preparedness

Preparing for winter storms is crucial to survival and safety. Become familiar with winter storm warning signals so you can take appropriate action and learn the dangers of winter ailments so you can avoid injury.

Winter Weather Warnings

Familiarize yourself with the following weather alerts so you know what actions you may need to take:

  • Winter storm watch: Be alert, a storm is likely
  • Winter weather advisory: Experts expect conditions to cause significant hazards, especially to motorists
  • Frost/freeze warning: Experts expect below freezing temperatures and damage to plants, crops or fruit trees
  • Winter storm warning: Take action, a storm is entering—or is already in—the area
  • Blizzard warning: The combination of snow and strong winds will produce blinding snow, near zero visibility, deep drifts and life-threatening wind chill—seek refuge immediately

Preventing Cold Weather Injuries

To prevent serious injury from extreme cold, which could result in death or permanent damage, do the following:

  • Select proper clothing for cold, wet and windy conditions and layer clothing when possible, making sure to include layers that repel moisture away from the skin.
  • Take frequent breaks in warm, dry shelters when possible.
  • Avoid over-exerting yourself, as your body needs this energy to keep its muscles warm. Work in pairs when it’s cold to share the load and watch for warning signs of frostbite or hypothermia.
  • When you know you will be exposed to extreme cold, prepare yourself warm, sweet beverages to drink and warm, high-calorie foods to consume. Avoid drinks containing caffeine or alcohol.

Other Winter Storm Hazards

Be on the lookout for the following winter storm hazards:

  • Adverse driving conditions, such as low visibility and slippery roadways
  • Icy walkways and sidewalks, which could cause slips and falls
  • Falling objects like icicles, tree limbs and utility poles
  • Electrocution due to downed power lines or downed objects in contact with power lines
  • Exhaustion, dehydration and back injuries from conducting manual labor in the snow