A mutual agreement preventing insurers from suing the other party to recoup losses.
By Angel Campa, Founder · Updated March 2026
Without a mutual waiver of subrogation, your insurance company can sue the other lease party to recover claim payouts. If a tenant accidentally causes a fire, the landlord's insurer could sue the tenant for the full building damage -- potentially millions of dollars. A waiver of subrogation ensures that insurance covers losses without triggering cross-party litigation, which protects both landlord and tenant from catastrophic personal liability.
Found in the "Insurance" section, often as a standalone paragraph titled "Waiver of Subrogation" or "Mutual Release." The clause should specify that both parties waive subrogation rights and that their respective insurers endorse the waiver.
Lextract uses a combination of AWS Textract OCR and Claude AI to identify and extract the waiver of subrogation from your lease PDF. The AI searches for all pages of the document, then assigns a confidence score based on OCR quality and extraction certainty. Fields with lower confidence are flagged for human review.
CGL Occurrence Limit
The minimum liability coverage required for a single incident.
CGL Aggregate Limit
The total maximum liability coverage required for the policy period.
Property Insurer
Specifies whether the landlord or tenant insures the physical building/improvements.
Additional Insured
Requirement for the tenant to add the landlord to their liability policy.
Indemnification Scope
The extent to which the tenant holds the landlord harmless from liability claims.
Subrogation is the right of an insurance company to pursue a third party that caused a loss to recover the amount it paid on a claim. After paying a fire damage claim, the insurer "steps into the shoes" of the insured and can sue the party that caused the fire.
Both parties benefit from a mutual waiver because it prevents their respective insurance companies from suing each other. Without it, a minor incident could trigger expensive litigation between the parties, damaging the landlord-tenant relationship and creating liability beyond what insurance covers.
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