Do I need a waiver of subrogation? A plain-English decision guide
"Do I need a waiver of subrogation?" usually means one of two things: should I require one from the people I hire, or I've been asked to provide one, do I have to? This guide answers both.
If you'd rather see it than read it, the interactive waiver of subrogation explainer shows who pays a claim with and without a waiver.
Quick answer
| You are… | Should you require one? | Will you be asked to give one? |
|---|---|---|
| General contractor | Yes, from subs, on GL and workers' comp (often auto and umbrella too) | Yes, by owners and developers |
| Subcontractor | Sometimes, from your own lower-tier subs | Almost always, by GCs |
| Property manager / owner | Yes, from vendors working on site | Sometimes, by tenants in leases (property waivers) |
| Vendor or service company | Rarely | Often, by the property managers and facilities you serve |
| Tenant | — | Commonly, through mutual property waivers in the lease |
If you hire subs or vendors: why you want it
A waiver stops your vendor's insurer from suing you to recover a claim it paid. The classic case: a subcontractor's employee is injured on your site, the sub's workers' comp carrier pays, then sues you, saying your site conditions caused the injury.
Without a waiver, you could end up paying for your own vendor's insurance claim. With one, the vendor's insurer absorbs it, which is how most contracts mean to divide the risk.
Require it when:
- vendors' employees will be on your job site or property
- the work is physically risky (roofing, steel, electrical, demolition, excavation, tree work)
- your own contract with the owner or lender requires you to get waivers from your subs ("flow-down")
It matters less when:
- the vendor never sets foot on site (a software provider, an off-site fabricator shipping materials)
- the job is tiny and one-off. Even then, many companies require it to keep things consistent.
If you're asked to give one: what to do
- Read your contract. Find which policies need the waiver (GL, auto, workers' comp, umbrella) and who it must cover (the GC, the owner, others).
- Ask your broker whether your policies already include a blanket waiver. Many contractor GL packages do. Workers' comp usually needs its own endorsement, such as WC 00 03 13. See the endorsement guide.
- Ask what it costs. Workers' comp waivers often have a premium charge. Price it into your bid.
- Get the certificate updated. Your agent marks SUBR WVD on the right lines and adds wording in Description of Operations.
- Don't agree to something your policy doesn't have. If you sign a contract promising a waiver and your policy doesn't include one, you may be in breach. Some policies can also limit coverage if you give up recovery rights without the insurer's agreement.
When it's reasonable to push back
- The state restricts it. Some states limit or prohibit workers' comp waivers. Your broker will know.
- It's one-sided in a way that doesn't fit. A lease, for example, may ask the tenant to waive property claims while the landlord doesn't. Mutual waivers are the norm in commercial leases.
- The scope is unclear. "Waive all rights against all parties" with no limits is worth getting your attorney to look at.
Most of the time, though, waivers are standard. Fighting them can cost you the job.
Waiver vs. additional insured: you usually need both
They solve different problems:
- Waiver of subrogation: the vendor's insurer can't sue you to recover what it paid.
- Additional insured: you can claim under the vendor's policy if you're sued over their work.
Most construction and vendor contracts require both on general liability, plus a waiver on workers' comp. Additional insured vs. certificate holder walks through how to tell them apart on a certificate.
Checking it on every certificate
Once you require it, check every COI for SUBR WVD on the right lines, every time it renews. The free ACORD 25 checker does this on one certificate. Certy checks the general liability waiver across your whole sub or vendor list and flags certificates where it's missing.
This article is general information, not legal or insurance advice.
Frequently asked questions
Do I need a waiver of subrogation?
If you hire subcontractors or vendors to work on your site or property, you usually want them to provide one on general liability and workers' comp. If you're the sub or vendor, you need one when your contract requires it, so check your contract and ask your broker.
Is a waiver of subrogation required by law?
Generally no. It's a contract requirement, not a legal one. Some public contracts and many private contracts require it, and some states restrict waivers on workers' comp.
Can I refuse to give a waiver of subrogation?
You can negotiate, but many GCs and landlords treat it as non-negotiable. If you agree to it, make sure your policies actually include the endorsement, or you could be in breach of contract.
Does a waiver of subrogation hurt the person giving it?
It can affect your insurer more than you, since the insurer gives up recovery rights. Insurers may charge for it, and some policies limit coverage if you waive rights without the endorsement in place.