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Waiver of subrogation, demystified.
A waiver of subrogation is one of the three insurance requirements that show up in almost every construction and vendor contract. It quietly changes what your insurer can do after it pays a claim. Here is how subrogation works, why the other party wants it waived, and how we add it to your GL and workers' comp.
At a Glance
- Type
- Policy endorsement
- GL form
- CG 24 04
- WC form
- WC 00 03 13
- Requested by
- GCs, landlords, clients
Quick answer
Subrogation is your insurer's right, after it pays a claim, to step into your shoes and recover that money from whoever actually caused the loss. A 'waiver of subrogation' is an endorsement in which your insurer gives up that right against a specific party you name — usually because a contract requires it. It means that if your insurer pays a claim connected to that party's project or premises, it agrees not to turn around and sue that party to get the money back. It is commonly required by general contractors, landlords, and clients, and it appears on both general liability policies (ISO CG 24 04) and workers' compensation policies (WC 00 03 13). Ellie Insurance Group is an independent Florida agency (founded 2014, Tampa) that reviews your contracts and adds the correct waiver — blanket or scheduled — so your certificate matches the requirement.
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
Blanket applies to anyone you're required by written contract to waive; scheduled names each party specifically.
- Satisfies a contract requirement
It brings your insurance into compliance with the risk-transfer terms you agreed to sign.
- Is evidenced on the certificate
The certificate of insurance references the waiver so the requesting party can confirm it is in place.
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
GL waivers are often low or no cost; workers' comp waivers frequently carry a payroll-based surcharge.
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.
Quote checklist
What we'll need to add your waiver
- 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
WC waivers are required just as often.
Primary & Non-Contributory
The second piece of the contract trio.
Additional Insured
The third piece — usually all required together.
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.
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Next step
Get the right waiver on the right policies
Send the contract and your current GL and workers' comp declarations. An Ellie agent will confirm whether the waiver is required on both lines, add the correct blanket or scheduled endorsement, verify any premium impact, and issue a certificate that matches the requirement.