When an insurer pays a claim, it normally steps into the insured’s shoes and can sue whoever caused the loss to get its money back. That right is called subrogation. A waiver of subrogation gives it up in advance, for a named party or for anyone the insured agreed in writing to waive against.
How it shows up in an agency
Most requests come from contracts. A general contractor’s subcontract says, “Subcontractor shall obtain a waiver of subrogation in favor of Owner and Contractor on its general liability, auto and workers compensation policies.” The sub’s CSR then has to:
- Check whether each policy already includes a blanket waiver “where required by written contract,” or whether the carrier needs to add a specific endorsement naming the GC.
- Order the endorsement if needed. On workers compensation, carriers often charge for it, commonly as a percentage of the premium for the job or a flat fee, depending on the state and carrier.
- Mark the waiver box on the certificate only once the endorsement exists.
Common confusion
- The certificate doesn’t grant the waiver. Ticking “SUBR WVD” on an ACORD 25 is a statement, not coverage. The policy or an endorsement has to say it. See our ACORD 25 guide.
- It isn’t the same as additional insured status. Additional insured status gives the other party coverage under the policy. A waiver only stops the carrier from suing them. Contracts often require both, plus primary and noncontributory wording.
- Each line is separate. A blanket waiver on the GL policy does nothing for the WC policy. Review the GL, auto, WC and umbrella forms one by one.
- Timing matters. Most waivers must be in place before the loss. Agreeing to one after a claim can prejudice the insurer’s rights and breach policy conditions.