What it does
The commercial auto coverage forms contain a Transfer Of Rights Of Recovery Against Others To Us condition, which lets the insurer step into the insured's shoes and sue a third party who caused a loss it paid. CA 04 44 switches that condition off for the persons or organizations listed in its schedule, "but only to the extent" the insured waived subrogation in a contract with that party before the accident or loss. It modifies the business auto, motor carrier and auto dealers forms and applies to both liability and physical damage recoveries.
Who needs it
Contractors, haulers and service providers whose contracts with owners, general contractors, shippers or landlords include a waiver of subrogation clause. Without the endorsement, signing such a waiver could breach the policy condition and impair the insurer's rights.
Key points
- The waiver must exist in a written contract signed before the accident or loss.
- Each party must be named in the schedule. For accounts with many contracts, the blanket version CA 04 43 applies automatically whenever a written contract requires a waiver.
- The waiver does not make the other party an insured; pair it with CA 20 48 if additional insured status is also required.
Quoting and selling notes
Confirm whether the contract wants the waiver on auto, general liability and workers compensation, since each line uses its own endorsement. Because the insurer gives up recovery rights, expect underwriting questions about the contracts involved.
