What does the term "Waiver" refer to in an insurance context?

In an insurance context, the term "Waiver" refers to the voluntary relinquishment of a known legal right. This means that an individual or entity intentionally decides not to enforce or assert a legal right that it is entitled to under the terms of an insurance policy or the law. In many cases, waivers can occur when an insured party chooses to overlook certain liabilities or responsibilities, possibly in exchange for a benefit or to expedite a claim process.

For example, if an insurer decides not to pursue a defense against a claim even though they have the right to do so, they may be considered to have waived that right. Waivers are significant because they can impact future claims, rights to recover damages, or obligations under a policy.

In contrast, maintaining insurance obligations, complying with regulations, or having endorsements are more about adhering to requirements or adjusting coverage rather than releasing specific rights. Understanding waivers is crucial for public adjusters and others within the insurance industry, as it directly affects the parties involved and the outcomes of insurance claims.