Definition and Example. Imagine that you are walking along the sidewalk of a busy road with a group of friends. It's a hot, humid, and sunny day. Everyone is wearing shorts and loose clothing to battle the heat. You look to your left and see a man in a long fur coat and a tall pair of winter boots.
A waiver is the voluntary relinquishment or surrender of some known right or privilege. Regulatory agencies or governments may issue waivers to exempt companies from certain regulations. For example, a United States law restricted the size of banks, but when banks exceeded these sizes, they obtained waivers.
A waiver of subrogation is essentially an agreement that prevents your insurance company from acting on your behalf to recoup expenses from the at-fault party. Generally, a waiver of subro comes into play when the at-fault driver wants to settle the accident â but with your insurer out of the picture.