Which parties must sign a Non-Waiver Agreement?

A Non-Waiver Agreement is a critical document in the insurance process, particularly when there is a dispute regarding coverage. The purpose of this agreement is to clarify that the insurance company is not waiving any rights to deny coverage or settle a claim simply because it is engaging in defense or investigation of the claim.

Both parties—the insurance company and the insured—must sign the Non-Waiver Agreement to ensure that they both understand and agree to the implications of the agreement. By signing, the insured acknowledges that the insurance company is addressing the claim without waiving any rights to later challenge coverage. This mutual agreement helps to prevent misunderstandings about the company's position regarding coverage and protects both parties’ interests in the claims process.

In situations where there might be a conflict of interest or uncertainty about coverage, such an agreement can provide clear documentation that both parties are aware of the implications and that neither party is assuming any rights or responsibilities that were not explicitly agreed upon. This is essential for maintaining an open and transparent claims process while protecting the legal rights of both the insurer and the insured.