Waiver of insurance companies' subrogation against subcontractors in insurance contracts covering construction works

Abstract

Construction projects currently contain a lot of risks such as construction materials, vehicles, technical equipment, labor accidents and third parties... The law has set requirements for project investors, and construction contractors, design consultants… to take out compulsory insurance in their construction process. However, in practice, the insurer waives the right of subrogation to the contractors or other parties involved in the construction projects. The paper explores subrogation and waiver of subrogation in general and in insurance contracts on construction works in particular. The paper also analyzes a recent judgment of the British Court on not applying waiving of subrogation to subcontractor in the construction works, and given on such analysis, the paper proposes some suggestions for the parties in the construction projects in insuring the procured work.