Waivers of Subrogation

By signing a waiver of subrogation in a lease, the signer relinquishes his or her right (and that of his or her organization) to seek reimbursement from the landlord in the event that the landlord is legally responsible for an accident and the special event holder, or its insurer, pays the damages.  Many times these waivers are included in standard commercial leases, and many landlords do not understand them.  If you are faced with signing a lease or other contract containing a waiver of subrogation, you should request that it be stricken.  If the landlord is unwilling to do this, suggest that it be amended to become a mutual waiver.  In that case both parties waive their right of reimbursement, and agree that each will bear the cost of its own negligence.

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