What is the primary purpose of the Waiver of Our Right to Recover From Others endorsement?

The primary purpose of the Waiver of Our Right to Recover From Others endorsement is to prevent subrogation claims against third parties. This endorsement is often used in insurance policies to eliminate the insurer's right to seek recovery from another party who may have caused a loss. By implementing this provision, the insured party can ensure that their insurance claim will not be affected by any external claims or recoveries made against third parties.

This is particularly important in scenarios where a contractual relationship exists, such as when an insured and a contractor agree to share risks. The endorsement ensures that if one party pays for a loss, they cannot later pursue a recovery from the other party, fostering a cooperative relationship and avoiding litigation.

The other options may be relevant to different aspects of insurance coverage but do not capture the central concept of this endorsement. For instance, extending coverage to additional insureds pertains to broadening the policy's scope rather than addressing the recovery rights. Increasing liability limits concerns the financial limits within the policy, while covering legal defense costs related to workers' compensation deals specifically with employment-related scenarios rather than subrogation rights.