Waiver of Subrogation in Builders Risk Policies

November 2018

An insurer cannot subrogate against its own insured. Litigants have tested this well-known bar to subrogation since the s.s. Fitzmaurice struck and sunk the s.s. Dunluce Castle, and the latter’s underwriters tried to recover against the former’s owner, although he owned both vessels. Despite a long history, cases still arise that explore its limits. In particular, actions involving construction projects often address subrogation given the involvement of insured owners, contractors, subcontractors, builders risk policies and property insurers.