Why Do Your Customers Require a Waiver of Subrogation?
If your customers’ businesses are involved in an incident including your telecommunications contractors and a third party, they want to protect themselves and prevent your insurer from pursuing subrogation against them. A waiver of subrogation helps them do just that.
What is a Waiver of Subrogation?
Understanding a waiver of subrogation is an important part of signing a contract. Subrogation is the concept that a company may step into your shoes and act on your behalf in the event of some legal action, claim or loss. This concept limits the liability for individual people involved and places the liability on the company representing your services or insurance.
An easy example is to compare it to auto insurance. If another driver hits your car and causes damage, your insurance company practices subrogation. They will pay for you to repair your car, but they then inherit the right to recoup the money they paid you from the insurance company of the driver that hit your car.
A waiver of subrogation infers one party limits the rights of its company and insurer by waiving the right to have their insurer and hiring company step into their shoes in the event of a loss. In other words, it will keep an agency from recovering any costs they incur from damage or loss caused by a third party.
Cover All Your Telecommunications Needs
Many clients of telecommunications contracting companies often want a waiver of subrogation as a guarantee that they will not be held liable for any loss or damages in the event of an incident between your contractors, the client and a third party. The agreement prevents your business from seeking any share of damages that may be caused and reduces the potential for conflict between your business and your customers.
Protect yourself and your clients with coverage through USA Telecom Insurance Services, full-service MGA dedicated to meeting the needs of retail insurance agents and their telecommunication customers. For more information on waivers of subrogation and why your client may require you to have one, contact us today online or at 800-645-8699.