What Is a Waiver of Subrogation (and Why Your Contract Asks for One)?
5 min read · Updated June 20, 2026
You sign a contract to work for a general contractor and the insurance requirements include a “waiver of subrogation” on your workers’ comp. It sounds like legal boilerplate, but it’s a specific thing with a real cost and purpose. Here’s what it means.
First, what subrogation is
Subrogation is your insurer’s right to step into your shoes and recover what it paid from whoever caused the loss. If your workers’ comp carrier pays a claim for an injured worker, it can then try to recoup that money from a third party who was at fault.
What the waiver does
A waiver of subrogation gives up that recovery right against a specific named party — usually the general contractor or project owner. With the waiver in place, your carrier agrees it won’t come after that party to recover a payout.
Why a GC requires it from subs
The GC wants to make sure that if one of your workers is hurt on the job, your workers’ comp carrier can’t later turn around and sue the GC to recover the claim. Requiring a waiver of subrogation removes that risk for them — which is why it’s a near-standard line in subcontractor agreements, right alongside the COI requirement. How it fits with additional-insured and certificate-holder status →
How to provide one
Your carrier adds a waiver of subrogation as a policy endorsement, usually for a small additional premium. Ask your agent to add it (a blanket waiver covers all contracts that require one), and make sure your certificate of insurance shows the waiver for the project. More on COI requirements →
The flip side: requiring it from your subs
When you’re the upper contractor, you’ll often require the same from the subs you hire. Confirm their COI reflects the waiver and the workers’ comp line before they start. Check a sub’s certificate →
General information for contractors, not legal or insurance advice. Endorsement availability and cost vary by carrier and state — confirm with your agent.
Frequently asked questions
What is a waiver of subrogation?
Subrogation is your insurer’s right to recover its payout from whoever caused a loss. A waiver of subrogation gives up that right against a named party — often the general contractor — so the insurer won’t pursue them.
Why does a contract require a waiver of subrogation on workers’ comp?
A general contractor wants assurance that a sub’s workers’ comp carrier won’t later sue the GC to recover an injury payout. The waiver removes that risk and is a common contract requirement.
How do I add a waiver of subrogation?
Your carrier adds it as a policy endorsement, usually for a small additional premium. Ask your agent (a blanket waiver covers all contracts that require one) and have the COI show it for the project.
See your own exposure — free
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