What it means
Subrogation is the insurer’s right, after paying a claim, to step into the insured’s position and pursue whoever caused the loss. A waiver of subrogation gives up that right against a named party, or against any party the insured agreed in writing to waive.
Contracts often ask for waivers on general liability, auto, workers compensation and property policies. Agreeing to a waiver in a contract does not by itself bind the insurer. Without the matching endorsement the business may be in breach of the contract, and some policies restrict waivers given without the insurer’s consent.
On general liability the ISO form is CG 24 04, Waiver of Transfer of Rights of Recovery Against Others to Us. Workers compensation waivers use state specific endorsements, and insurers often charge premium for them.
An example
Coastline Janitorial signs a cleaning contract with Bayview Office Park that requires a waiver of subrogation on workers compensation. When a Coastline employee slips on a wet stair the property manager failed to mark, the waiver endorsement means Coastline’s workers compensation insurer cannot seek repayment from Bayview.
Names in this example are fictional.
See this term in your own contract.
Send a lease, subcontract or client agreement with the policies you hold. You get every insurance requirement in it, cited to the clause, set against what your policies say. Free, and back within one business day.
Get a free contract checkWaiver of subrogation, answered
Does a waiver of subrogation cost extra?
It can. On workers compensation, insurers commonly charge a percentage of premium for a specific or blanket waiver, often with a minimum charge. On general liability a blanket waiver may already be included. The charge depends on the insurer and the state, so it is worth checking the cost before agreeing to the contract.
Can I just agree to a waiver in the contract?
You can sign the contract, but the insurer is not bound unless the policy allows the waiver. Without the matching endorsement you could be in breach of the contract or out of step with your policy conditions. Confirm the endorsement is in place, or can be added, before committing to the waiver in writing.
General information only. It is not legal or insurance advice. Only issued policy documents and endorsements describe actual coverage.