Every property owner has a legal obligation to maintain the property to a standard that does not present any unnecessary risk of injury to tenants, visitors or other members of the public.

If a member of the public suffers an injury following an accident on, or linked to your premises, then Property Owners Liability insurance is designed to meet the costs of any damages awarded.

Claims and costs

Average claim costs for a very severe brain damage claim ranges from £250,000 to £400,000 or minor back injuries can range from £15,000 to severe back injuries of £150,000. The award amount will depend on the severity, future prognosis and recovery time.

Whilst Insurers will do everything they can to mitigate the costs paid, they may also want to pursue recovery from any other party that they may feel are responsible i.e. the Managing Agent.

Does your property owners client’s policy wordings have a “Waiver of Subrogation against the Managing Agent Clause”

First things, first. 

What is subrogation?

In the insurance context, subrogation is defined as “the principle under which an insurer that has paid a loss under an insurance policy is entitled to all the rights and remedies belonging to the insured against a third party with respect to any loss covered by the policy.”

In layman’s terms, subrogation occurs when an insurer settles a claim to a third party, for example a personal injury claim following a fall or trip on their property.

The insurance company is then “subrogated” – or steps into the shoes of the insured – to sue that third party for the loss suffered by the insured.  In short, the insurance company pays the claim and may then seek recovery, where possible.

What is a waiver of subrogation?

A waiver of subrogation is a contractual provision whereby an insured waives the right of their insurance carrier to seek redress or seek compensation for losses from a negligent third party.

Many management agreements leave the agent exposed to recovery of personal injury claims that occur on their managed sites, so this is definitely worth checking and policing to avoid this happening to your business.

Talk to us

Contact the team at Hazelton Mountford for a chat about subrogation, being a Managing Agent and any other insurance query you may have. We’re here to help.

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