Blog · Oct 29, 2026

Waiver of subrogation on workers' comp: why GCs require it and what it costs

Of all the waivers in a subcontract, the workers' comp waiver of subrogation gets the most pushback from subs, and it does the most for GCs. It's the one that matters when a sub's worker gets hurt on your site.

This guide covers what it does, the standard endorsement, what it costs, and how to check it on a certificate of insurance.

Why the workers' comp waiver matters

Workers' comp is a trade-off. Employees get benefits no matter who was at fault, and in return generally can't sue their own employer. That protection covers the employer, not you as the GC.

Two things can still reach you after a sub's worker is hurt on your job:

1. The injured worker can sue you as a third party, claiming your site conditions caused the injury.
2. The sub's workers' comp insurer can sue you to get back the benefits it paid. That's subrogation.

The waiver of subrogation takes away the second one. With medical bills and lost wages on a serious injury, that recovery claim can be large. The waiver doesn't stop the worker's own lawsuit, which is why contracts also require additional insured status on the sub's general liability, plus indemnity.

Toggle the waiver on and off in the waiver of subrogation explainer to see the difference in a real scenario.

The endorsement: WC 00 03 13

In most states the standard form is NCCI's WC 00 03 13, Waiver of Our Right to Recover From Others Endorsement. Its schedule says who it covers:

• Specific: "ABC Builders, LLC — Job #2214, 400 Main St."
• Blanket: "Any person or organization for whom the named insured has agreed by written contract to furnish this waiver."

Some states use their own version of this endorsement, and monopolistic state-fund states (North Dakota, Ohio, Washington and Wyoming) handle workers' comp outside the private market, so waivers there work differently or aren't available the usual way. If you're working in those states, see the state-by-state workers' comp requirements.

For how blanket wording can fail, read blanket waiver of subrogation, explained.

What it costs

Unlike GL waivers, workers' comp waivers usually have a noticeable price. Carriers commonly charge a percentage of the workers' comp premium, with a flat minimum, either per scheduled waiver or once for a blanket waiver. Exact rates vary by state and carrier.

For a sub with a large payroll, that adds up. That's why some subs ask to skip it. Two fair responses:

• It's in the contract. Like any limit, it's a requirement for working on the job, and subs can price it into their bid.
• Blanket is often cheaper. A sub that works for many GCs usually pays less with one blanket waiver than with many specific ones.

State restrictions

A handful of states limit workers' comp waivers. Some prohibit them entirely in certain situations, and others allow them only when specific conditions are met. The rules change, so don't rely on an old list. Ask the sub's broker: "Is a waiver of subrogation available on your workers' comp in [state] for this job?" If it isn't available, document that and talk to your own broker about other protection.

How to verify it on a COI

On the ACORD 25:

1. Find the Workers' Compensation and Employers' Liability row.
2. Check that SUBR WVD is marked on that row. On many forms the ADDL INSD box on this row is shaded out, because additional insured status doesn't apply to workers' comp. The waiver box still does.
3. Read Description of Operations for wording like "Waiver of subrogation applies on WC in favor of the certificate holder" or "blanket where required by written contract."
4. Check the employers' liability limits at the same time. Each accident, disease per employee and disease policy limit are commonly required at $500,000 or $1,000,000 each.
5. For high-risk trades, ask for a copy of the WC 00 03 13 (or the state equivalent).

A sub that says it's exempt from workers' comp, such as a sole proprietor with no employees, can't give you a waiver because there's no policy. Collect the state's exemption certificate instead, and know that your own workers' comp auditor may charge you for that sub's payroll. See workers' comp audits and uninsured subcontractors.

Track it every renewal

Workers' comp policies renew every year, often on a different date than GL. The waiver has to be on the current policy. Certy reads each sub's COI, checks that workers' comp and your employers' liability limit are there, and reminds subs 30, 14 and 7 days before any policy expires. Waiver checks currently cover the general liability line, so review the workers' comp SUBR WVD box yourself. Use the free ACORD 25 checker to try it on a certificate you have now.

This article is general information, not legal or insurance advice. Waiver availability and cost depend on the state and carrier, so confirm with a licensed broker.

Frequently asked questions