Guide
What a Waiver of Subrogation Does
By Keelstar Team · Updated June 1, 2026
The short answer
A waiver of subrogation prevents an insurer from suing your organization to recover claim payments related to the vendor's work. It protects the business relationship after a loss: the carrier pays the claim but gives up the right to seek reimbursement from you. It is commonly required on general liability and workers compensation in U.S. construction and lease agreements — verify it with an endorsement, not certificate boilerplate alone.
Subrogation in plain language
After an insurer pays a claim, it often seeks reimbursement from other parties who contributed to the loss — subrogation. Example: a subcontractor's employee is injured on your construction site; workers comp pays the employee, then looks to recover from other responsible parties. Without a waiver, your organization can be in the insurer's crosshairs even when you thought the vendor's policy handled the incident.
What the waiver changes
A waiver of subrogation endorsement instructs the insurer to waive its right to subrogate against specified parties — typically you, the owner, or upstream contractor. The carrier still pays covered claims, but it gives up seeking repayment from you for losses arising from the vendor's work. That aligns with mutual indemnity language common in U.S. construction subcontracts and commercial leases.
Where you see the requirement
General contractors flow waivers down to subcontractors. Commercial landlords require them from tenants' contractors altering premises. Healthcare facilities may require them from major construction and renovation trades working in occupied buildings. The requirement appears in insurance exhibits alongside additional insured and minimum limits.
How to verify on a COI
The ACORD 25 may note 'waiver of subrogation' in the remarks or policy checkboxes — that is not proof. Request the endorsement for general liability and workers compensation when your contract requires it. Confirm the waiver names your organization or uses blanket language acceptable to your risk team.
Interaction with additional insured
Additional insured and waiver of subrogation solve different problems — coverage access vs post-claim recovery. Many U.S. contracts require both on the same policies. Review them together during certificate intake so you do not approve a certificate with strong limits but missing waiver language.
When a waiver is missing
Treat a missing waiver like a limit shortfall: do not approve for work until the endorsement is issued. Vendors may need to pay a small premium charge for waiver endorsements — that is normal. Document the hold and notify the broker early; endorsements take longer than reprinting a certificate.
Frequently asked questions
- Is waiver of subrogation the same as additional insured?
- No. Additional insured gives you access to the vendor's coverage. Waiver of subrogation stops the insurer from suing you after paying a claim. Contracts often require both.
- Does every state allow workers comp waivers?
- Rules vary. Some states restrict or regulate waivers of subrogation on workers compensation. Confirm with counsel when you operate across multiple states.
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