In a leasing context, a provision typically mutually negotiated between the landlord and tenant in which both agree to waive their rights of subrogation.

The landlord and tenant may negotiate to carry insurance policies with mutual waivers of subrogation to minimize lawsuits and claims among the parties. The risk of loss is agreed by the landlord and tenant to be on their insurers. The costs of the insurance coverage is contractually allocated between the landlord and the tenant when they negotiate the provision. When the risk is allocated to the insurers by the parties, the insurers are not allowed to seek redress by subrogation claims in the event of a loss from the "at fault" party. Effectively, the insurer gives up the right to take action against a third party for a loss suffered by the insured and the insured party agrees not to allow its insurance carrier to seek redress from the other party's insurance carrier if the claim is paid.