Everything You Need to Know About Waivers of Subrogation for Wedding Insurance

Planning a wedding involves making sure every detail is perfect, from choosing the flowers to picking the playlist. One important but often overlooked aspect is getting insurance. Accidents and incidents can happen, even at the most carefully orchestrated events. That’s why wedding insurance is so crucial.

One part of wedding insurance you may come across is the waiver of subrogation. Venues sometimes require this addition for weddings. It may sound complicated, but it doesn’t have to be. This guide will explain waivers of subrogation for wedding insurance in simple terms. Read on to learn:

• What a waiver of subrogation is
• When you need one for your wedding
• How it works with wedding insurance
• How much it costs
• And more

Let’s start with the basics.

What Is a Waiver of Subrogation?

A waiver of subrogation prevents insurance companies from trying to recover losses from each other.

Here is a quick overview:

• Subrogation gives an insurance company the right to legally pursue a third party that caused an insurance loss.

• A waiver of subrogation makes the insurance company give up this right.

For example, say a wedding reception is held at a venue. During the reception, a guest accidentally knocks over and breaks a priceless vase owned by the venue.

The venue files a claim with their property insurance company. The insurance company pays for the broken vase.

Normally, that insurance company could try to subrogate – meaning recover their money from the liable third party (the clumsy guest).

But if there is a waiver of subrogation between the venue and wedding insurance company, the venue’s insurer cannot pursue the guest. Their right to subrogate is waived.

So in short:

• Subrogation = the insurance company can pursue compensation from third parties who cause losses.

• Waiver of subrogation = the insurance company gives up the right to pursue third parties.

The most common situation where waivers come into play is when a venue requires them from weddings. Let’s look at why next.

When Are Waivers of Subrogation Needed for Weddings?

Venues will sometimes require a waiver of subrogation from the wedding. This prevents insurance companies from going after each other if property damage happens.

For example, say a reception is held at a hotel ballroom. The florist sets up decorations and accidentally cracks a window.

The hotel files a claim with their property insurance company, who pays for the broken window.

Normally, that insurer could try to subrogate and recover what they paid out from the florist or wedding insurance.

But with a waiver of subrogation, the hotel’s insurer cannot pursue the wedding parties involved. Their right to subrogate is waived.

Essentially, waivers eliminate battles between insurance companies about who pays what. The venue’s insurance covers their property, while the wedding insurance covers the event.

Key Takeaway: Venues require waivers from weddings to prevent their insurer from trying to recover money if wedding activities cause property damage.

So when might you need a waiver of subrogation for your wedding? There are two key times:

1. The Venue Requires It

Some venues will require a waiver of subrogation in their contract. Always review your venue contract closely. Look under sections about insurance requirements.

If the contract says you must provide a waiver of subrogation, then you’ll need to get one.

2. The Venue is Named as an Additional Insured

Even if the venue contract does not explicitly require a waiver, you may still need one.

Most venues will ask to be named as an additional insured on the wedding insurance policy. This gives them some protection under the wedding insurance.

However, being named as an additional insured does not automatically waive their insurer’s right to subrogate. To prevent this, a waiver is also required whenever a venue is added as additional insured.

So if your venue is asking to be named as an additional insured, get the waiver too. Tell your insurance agent the venue needs to be added along with a waiver.

Key Takeaway: You need a waiver of subrogation if your venue contract requires it or if the venue is named as an additional insured.

Okay, so you’ve determined you need a waiver. Now let’s look at how waivers work with wedding insurance.

How Waivers of Subrogation Work with Wedding Insurance

Waivers of subrogation must be written into the wedding insurance policy. Some key things to know:

Waivers Only Apply to Property Damage: Waivers prevent insurance companies from subrogating against each other for property damage claims only. Personal injury claims are not included.

For example, if a wedding guest falls and breaks their leg on a loose dance floorboard, the waiver would not apply. The injured guest could potentially pursue the venue, wedding couple, etc.

But if decorations scrape and damage the dance floor, causing a property damage claim, then the waiver would prevent insurance companies from subrogating.

Both Parties Must Have Waivers: For a waiver of subrogation to work, it must be mutually agreed to by both parties’ insurance companies.

In our hotel ballroom example, both the hotel and wedding must have waivers in place for it to be valid. If only one has a waiver but the other does not, then it does not prevent subrogation.

Can Be Added to Wedding Policies: Most wedding insurance providers allow you to add a waiver of subrogation endorsement. There is usually an additional cost, which varies by insurer.

Must Include Wording About Waiving Rights: The specific language may vary, but essentially the waiver must state that both insurance companies agree to waive subrogation rights against each other for covered claims.

Talk to your wedding insurance agent if you need a waiver added to your policy. They can walk you through the process and language requirements.

Key Takeaway: For a waiver to work, it must be added to both the venue’s and wedding’s insurance policies and include specific language about waiving subrogation rights.

How Much Does a Waiver of Subrogation Cost for Wedding Insurance?

If your wedding insurance policy needs a waiver added, there will be an additional fee. Costs vary between insurers but are generally:

• $50 – $100 for a basic waiver: Covers property damage only. Does not apply to personal injury claims.

• $100 – $150 for a “blanket” waiver: Covers property damage and any personal injury claims associated with property damage. Broader than a basic waiver.

• $250+ for a full waiver: Covers property damage and all personal injury claims, even those not related to property damage. Extremely broad. Usually overkill for weddings.

What wedding vendors usually need: The mid-level blanket waiver is typically suitable for weddings. It covers property damage and any immediate bodily injury directly resulting from that damage. Covers scenarios like a guest hurting themselves on damaged dance floor boards.

What venues often require: Some venues specifically require a basic waiver limited to only property damage. Read your venue contract carefully to see if they specify only a basic waiver.

Key Takeaway: Expect to pay $50 – $150 to add a waiver of subrogation to wedding insurance, depending on the type required.

The additional waiver fee pays for the insurer to waive their right to recover losses from third parties like the venue. It’s the cost of the insurer assuming full risk.

Waivers of Subrogation and Homeowners or Renters Insurance

Does homeowners or renters insurance provide any waiver of subrogation for weddings?

Unfortunately, personal home/renters policies do not include waiver endorsements. Their liability coverage also may not extend to weddings held off-site.

You need a designated wedding liability policy with waiver added to meet venue requirements. Relying solely on homeowners or renters insurance likely will not suffice.

Key Takeaway: Homeowners and renters policies do not include waiver of subrogation coverage for weddings.

Final Tips for Waivers of Subrogation for Weddings

A few final best practices when dealing with waivers for wedding insurance:

• Review venue contracts early and look for any mention of waivers or naming the venue as additional insured.

• Tell your insurance agent as soon as possible if the venue needs to be added along with a waiver. It can take time to draw up the endorsements.

• If unsure what type of waiver you need, ask the venue to specify. Only get the level of waiver required so you don’t overpay.

• Make sure the waiver language provided by the insurer meets the venue’s requirements before accepting it.

• Send the venue a certificate proving the policy has the additional insured and waiver endorsements.

• Keep communicating with the venue to ensure you provide everything needed to satisfy their insurance requirements.

And that covers the key things to know about waivers of subrogation for wedding insurance! While it may seem complicated at first glance, a waiver can be vital for avoiding subrogation disputes between insurers.

If your venue requires you to carry one, work closely with your insurance provider to make sure it is properly added to your wedding policy. With some preparation and communication, you can get the right waiver in place and have peace of mind that a detail like insurance will not derail your big day!