Skip to main content
Monday–Friday · 9:00 AM – 5:00 PM ET·independent · Insuring businesses nationwide
Business Insurance · Contract Clauses
Waiver of subrogation, demystified.
Contractors, vendors, tenants, and service businesses often need a waiver of subrogation to satisfy a contract. Ellie helps you compare competitive insurance options, understand blanket versus scheduled wording, and coordinate the GL or workers' comp endorsement your agreement requires.
Who needs this
Who typically has to provide a waiver
Subcontractors on a GC's project
General contractors almost always require a waiver of subrogation on both GL and workers' comp before a sub mobilizes.
Tenants under a commercial lease
Landlords commonly require the tenant's insurers to waive subrogation against the landlord for property and liability claims.
Vendors and suppliers
Large clients require waivers so their operations aren't pursued by a vendor's insurer after a loss.
Contractors on institutional work
Public entities, schools, and hospitals build waiver requirements into their standard contracts.
Staffing and service firms
Companies placing workers or providing services on a client's premises are routinely asked to waive workers' comp subrogation.
Any business signing a broad indemnity contract
Waivers frequently accompany indemnification and additional insured clauses in modern contracts.
What it covers
What a waiver of subrogation does
A waiver reallocates who ultimately bears a loss. It gives up a recovery right your insurer would otherwise have — nothing more, nothing less.
- Gives up the insurer's recovery right
Against the named (or blanket) party, your insurer agrees not to pursue reimbursement after paying a covered claim.
- Protects the other party from your carrier
The contracting party gains certainty that your insurer will not sue them to recover the claim payment.
- Applies on GL and/or workers' comp
Provided by separate endorsements on each line — CG 24 04 for GL and WC 00 03 13 for workers' comp.
- Can be blanket or scheduled
A scheduled waiver identifies the party in the endorsement or declarations. Some insurers offer blanket wording for parties you must waive by written contract, but its trigger, named-party definition, operations, and state limits control. Read the actual policy wording before relying on it.
- Satisfies a contract requirement
It brings your insurance into compliance with the risk-transfer terms you agreed to sign.
- Is evidenced on the certificate
A certificate may reflect the policy as permitted by the applicable form and state law, but it does not create the waiver. The policy and endorsement control. If the other party needs holder-specific proof, ask what evidence it will accept and provide the endorsement when appropriate.
What it doesn't cover
What a waiver of subrogation does NOT do
A waiver is narrow. It changes recovery rights; it does not change your coverage.
- It does not add coverage or raise your policy limits
- It does not make the other party an additional insured (separate endorsement)
- It does not control payment order (that's primary & non-contributory)
- It does not waive rights against parties you did not name or aren't required to waive
- It does not apply automatically — it must be endorsed onto the policy
- It does not protect you from your own liability under the contract
- It does not override the policy's own exclusions
Cost drivers
What affects a waiver's cost and availability
Line of coverage
Availability and pricing vary by insurer, state, endorsement wording, classification, and whether the waiver is specific or blanket. Obtain the carrier's terms and any additional premium before agreeing to a contract requirement.
Blanket vs. scheduled
Blanket waivers are convenient but may be priced higher, especially on workers' comp.
Carrier and state rules
Some states and carriers regulate how workers' comp waivers are charged and filed.
Class of business
Higher-hazard operations may see different waiver pricing and availability.
Contract wording
Specific ISO forms or edition dates required by the contract must be matched.
Volume of contracts
Businesses signing many contracts often justify a blanket waiver despite the added cost.
What we'll need to add your waiver
Start with your business and contact details. You do not need every document ready to reach out; your agent will explain which additional information is relevant to your coverage.
- The contract or insurance-requirements exhibit
- Whether the waiver is required on GL, workers' comp, or both
- Whether a blanket or scheduled waiver is needed
- The specific ISO form / edition date required, if any
- Current GL and workers' comp declarations and endorsement schedules
- The name and role of the party requiring the waiver
See it in action
How a waiver changes what happens after a claim
Subrogation is invisible until a claim is paid. This scenario shows the difference the waiver makes.
An employee of a subcontractor is injured on a job site. The sub's workers' compensation insurer pays the medical bills and lost wages. The injury was arguably worsened by a condition the general contractor created on site.
Without a waiver: the sub's workers' comp insurer can subrogate — it can pursue the general contractor to recover what it paid. The GC gets dragged into a recovery action arising from a project it hired the sub for.
With a waiver of subrogation naming (or blanket-covering) the GC: the sub's insurer has given up that recovery right. It pays the claim and does not pursue the GC. The risk stays exactly where the contract placed it.
Two lines, two endorsements
Where the waiver has to be added
Contracts usually require the waiver on more than one policy. Missing one line is the most common certificate rejection.
- General liability (CG 24 04)
Waives the GL insurer's recovery rights against the named or blanket party for liability claims arising out of your work.
- Workers' compensation (WC 00 03 13)
Waives the comp insurer's recovery rights against the party for work-injury claims. Frequently carries a payroll-based surcharge.
- Blanket form
Applies automatically to any party you're required by written contract to waive — efficient for businesses signing many contracts.
- Scheduled form
Names each specific party. Precise, but must be updated for every new contract that requires a waiver.
Definitions follow standard industry usage (IRMI); form numbers reflect common ISO/NCCI forms and can vary by carrier and state. Confirm the exact endorsement and any premium impact with your agent before relying on it.
Contract requiring a waiver of subrogation?
FAQ
Frequently Asked Questions
- Subrogation is the right of an insurer, after it pays a claim to its insured, to pursue recovery from the third party that actually caused the loss. IRMI describes it as the insurer's ability to recover, from the party responsible for a loss, the amount the insurer paid to the insured. It keeps the cost of a loss with the party at fault and helps hold down premiums.
- A waiver of subrogation means your insurer agrees, in advance, not to exercise that recovery right against a specific party you name. If your insurer pays a claim connected to that party, it will not later sue them to get the money back — even if that party contributed to the loss. The other party gets certainty that they won't be pursued by your carrier.
- They want to eliminate the risk that your insurer will sue them after paying a claim on your project or premises. Requiring a waiver removes that recovery threat and keeps the working relationship clean. It is a standard risk-allocation tool alongside additional insured status and primary and non-contributory wording.
- Both, and they are separate endorsements. On general liability, the common ISO form is CG 24 04, 'Waiver of Transfer of Rights of Recovery Against Others to Us.' On workers' compensation, it is typically WC 00 03 13. Contracts frequently require the waiver on both lines, so we confirm each policy carries it.
- A scheduled waiver names each specific party. A blanket waiver applies automatically to any party you are required by written contract to waive — convenient when you sign many contracts. Blanket waivers are common but must have the right trigger language, and some carriers charge a premium for them, especially on workers' comp.
- Sometimes. On general liability it is often available at little or no cost; on workers' compensation, carriers frequently charge a percentage surcharge on the affected payroll for a waiver, particularly blanket waivers. We confirm the cost with the carrier before binding.
- You would be in breach of the contract's insurance requirements, and your insurer would still retain its subrogation rights — meaning it could pursue the other party after a claim, exactly the outcome the contract was meant to prevent. That can damage the relationship and expose you to liability under the contract. The endorsement should be in place before work begins.
Keep reading
Explore related coverage
General Liability
Where the GL waiver (CG 24 04) attaches.
Workers' Compensation
The separate workers' comp endorsement used for work-injury claims.
Primary & Non-Contributory
How payment order differs from a waiver of subrogation.
Additional Insured
The separate status endorsement often requested in the same contract.
Certificate of Insurance
How the waiver is evidenced to the requester.
Contractors Insurance
Where waivers appear most often.
Sources
Authoritative references
Coverage descriptions and regulatory figures on this page are general summaries reviewed against the references above and are not a statement of coverage, legal advice, or a guarantee of eligibility or price. Last reviewed . Requirements and policy terms change — always confirm current rules with the relevant agency and verify coverage against the actual policy and a licensed agent.
Carrier access
More insurance options. One agency in your corner.
With access to 100+ carrier markets, we do the shopping so you don’t have to contact each company yourself. Your Ellie agent helps you compare competitive quotes and choose insurance for the work you do.
+75 more
Next step
Need a waiver for a contract? Let's match it correctly
Send the contract and your current GL and workers' comp declarations. Ellie will help confirm which policy lines and endorsement wording are required, compare available options, review any premium impact, and issue evidence that matches the requirement.