What is a waiver of subrogation?

A simple example

A subcontractor's employee is injured on your site. The subcontractor's workers' compensation insurer pays the medical bills and lost wages. Without a waiver, that insurer could sue you to recover its costs, arguing site conditions caused the injury. With a waiver of subrogation in favor of your company, it agrees not to.

Why contracts require it

• It keeps claims with the insurer that was paid to cover them.
• It avoids lawsuits between parties working on the same project.
• It protects your loss history and premiums.

Where it shows up

On the ACORD 25, the SUBR WVD column is marked Y next to each policy that includes a waiver. Contracts commonly ask for waivers on general liability, auto, umbrella and workers' compensation.

As with additional insured status, the Y is only a summary. The waiver itself is created by an endorsement on each policy. Workers' compensation waivers in particular are often state-specific and may carry an extra premium for the vendor.

How to verify it

• Check SUBR WVD shows Y on every line your contract lists.
• Request the waiver endorsement for each policy.
• Confirm whether it's blanket (anyone required by written contract) or names your company specifically.
• For workers' comp, confirm the endorsement covers the state where the work happens.

A note on legality

Some states restrict waivers of subrogation in certain contracts. This page is general information, not legal advice; confirm requirements with your attorney or broker.