What is a Waiver of Subrogation?
Learn why hiring parties require Waivers of Subrogation across General Liability, Auto Liability, and Workers’ Compensation.
A Waiver of Subrogation is an agreement wherein an insurance carrier relinquishes its right to seek financial recovery from a negligent third party after covering a loss. In construction agreements, it prevents the subcontractor’s insurer from suing the hiring general contractor or project owner.
Why Contractors Require This Endorsement
Eliminates Cross-Lawsuits
Keeps the financial burden of claims contained within the trade contractor’s policy rather than creating litigation between project partners.
Protects Experience Mods
Prevents workers’ compensation subrogation claims from driving up the general contractor’s insurance modification rate (EMR).
Comparing Waiver of Subrogation vs Primary & Non-Contributory?
Understand how both endorsements work together to secure risk transfer.