Many commercial leases provide for mutual waivers of subrogation in the event of a casualty loss, but if inartful drafting leads to a lack of coverage, there can be no right to subrogation and a waiver clause will not apply.
Essentially, if both landlords and tenants agree to surrender certain rights, their insurance companies might have to step into their shoes and sue each other for negligence or other misconduct. They accept these limitations on their right to sue because they believe they can rely on their own insurance policies to cover their property damages if there is a fire or other casualty.
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