The issue of whether an alarm company should include a waiver of subrogation clause in its agreement with end customers comes up frequently. A recent decision by the United States District Court of Maryland established the validity and purpose of the importance of a Waiver of Subrogation.

In the case at hand, the plaintiff’s insurance company issued a property insurance policy in favor of the defendant, a fire sprinkler business. The defendant had an agreement with its customer to inspect, manage and maintain the sprinkler system. Under the terms of the agreement the sprinkler company was not intended to reveal design or installation flaws or code compliance violations.