Here's the clause as it appears in our Proprietary Lease and probably in many others:

"4(d). Waiver of Subrogation: The Lessor agrees to use its best efforts to obtain a provision in all insurance policies carried by it waiving the right of subrogation against the Lessee; and, to the extent that any loss or damage is covered by the Lessor by any insurance policies which contain such waiver of subrogation, the Lessor releases the Lessee from any liability with respect to such loss or damage."

I'm not a lawyer -- and you should definitely consult yours -- but here are a couple of comments.

First, note that this is only a "best efforts" clause. Your coop's insurance policy may not actually include a waiver of subrogation. If it does, it means that the insurance company has agreed not to go after the offending shareholder to recover money paid to the coop to settle a claim. This is true even if the shareholder's negligence caused the damage: see Indian Harbor Insurance v. Dorit Baxter Skin Care, http://www.allbusiness.com/legal/trial-procedure-summary-judgment/14662665-1.html

Furthermore, the clause says the coop releases the shareholder from liability to the extent that the loss or damage is covered by such an insurance policy. Presumably, this means that the coop *can* go after the shareholder for any damages not covered by the insurance. But again, I'm not a lawyer, so let us know what your attorney says about this.