What is the term for a policy condition where the insurer agrees not to pursue damages against a parent or subsidiary company of the insured?

The correct term for a policy condition where the insurer agrees not to pursue damages against a parent or subsidiary company of the insured is known as a subrogation waiver. This provision is often included in insurance contracts to protect related entities from being held financially responsible for claims made under the policy.

When an insurer pays out a claim to the insured, it generally has the right to "subrogate," or seek reimbursement from third parties that may have been responsible for the loss. A subrogation waiver prevents the insurer from exercising this right in instances involving the insured's parent or subsidiary. This creates a more favorable coverage situation for the insured, as it limits the risk that related companies will face financial liability arising from the same event.

This distinction highlights why subrogation waivers are essential in cases where there are interconnected corporate structures, ensuring that insurance proceeds are not diminished by further claims against related parties. Other terms like contribution waivers, hold harmless clauses, and indemnity clauses have different implications and context within risk management and liability agreements, which is why they do not apply to this specific scenario.