What is a waiver of subrogation?
Subrogation is an insurer's right to recover what it paid on a claim from whoever actually caused the loss. A waiver of subrogation is the insurer giving up that right against a specific party — usually you, because your contract demanded it.
Example: your vendor's employee is injured on your site; their workers comp carrier pays, then sues you to recover, arguing your negligence contributed. A waiver of subrogation endorsement on the vendor's policy stops that second lawsuit before it starts.
Why contracts require it
Risk allocation. Commercial contracts push each party's losses onto that party's own insurance, and waivers keep the insurers from unwinding the deal through recovery actions. Construction contracts, leases and service agreements routinely require waivers on general liability and workers compensation policies.
How to verify a waiver on a COI
The ACORD 25 has a SUBR WVD checkbox — and the checkbox is not the waiver. Verification means finding the endorsement itself:
- On general liability: look for CG 24 04 ('Waiver of Transfer of Rights of Recovery Against Others to Us') or equivalent carrier forms attached behind the certificate.
- On workers comp: look for the WC 00 03 13 waiver endorsement (or state-specific equivalents).
- Check whether the waiver is 'blanket' (applies wherever a written contract requires it) or 'scheduled' (names specific parties — your exact entity must be on the schedule).
- Confirm the endorsement's policy number matches the policy on the certificate face.
Frequently asked questions
Is a waiver of subrogation the same as additional insured?
No. Additional insured gives you coverage under the other party's policy; a waiver of subrogation stops their insurer from recovering against you. Contracts often require both — and each needs its own endorsement.
Where does the waiver appear on a certificate?
As a checkbox in the coverage grid and often a sentence in the description box — but the operative document is the endorsement page attached behind the certificate. If it isn't attached, request it.
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