QS APC Forum by HKIS Young Surveyors Group
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Cross liability and subrogation in Insurance Policy
Sun May 7, 2017 4:34pm

Assume sub-contractor A and B are covered in joint name under CAR.

If A caused loss/damages to B's property which is not covered by section I (material damages), assuming there is a cross liability clause so that the policy apply separately to each of the insured, B can be treated as a third party so that any claim from B to A can be covered by section II.

My question is why it is needed to waive subrogation right in the above situation. My understanding is that no one can the insurer pursue after A caused loss/damages to B's property.

My understanding to subrogation right is that, when a third party caused damages to A / B 's works, A / B can recover loss by virtue of section I from the Insurer, whereas the insurer have the right to pursue the wrongdoers to recover such loss.

Furthermore, assuming that now if A caused loss/damages to B'works (works not related to A). B can obviously recover loss under the policy. Is 'waive of subrogation right' necessary so that A would not be pursued by the insurer? Also, would the situation be different when B is now the Main Contractor, whose works is related to A's works?

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QS APC Forum by HKIS Young Surveyors Group