A waiver of subrogation in workers comp is an endorsement where your workers compensation insurer agrees not to seek reimbursement from a third party — usually a client or general contractor — after paying a claim on your employee’s injury. It’s most often required in construction and commercial contracts, and it’s added to your policy as an endorsement, typically for an additional premium. Without it, your insurer could pursue the third party to recover what it paid; with it, that party is protected.
This guide focuses on the waiver specifically in the workers comp context — when you need it, how it works, and what it costs. For the general meaning of the term, see our explainer on qué significa la renuncia a la subrogación.
How It Works in Workers Comp
When your workers comp insurer pays a claim for an injured employee, it normally has the right to recover those costs from any third party whose negligence contributed to the injury — that’s subrogation. A waiver of subrogation gives up that right against a specific party named in (or covered by) the endorsement.
Ejemplo: Your employee is injured while working at a general contractor’s site. Your workers comp insurer pays the claim. Normally it could investigate and try to recover from the GC if the GC was at fault. If your policy includes a waiver of subrogation naming that GC, your insurer agrees up front not to pursue them — which is exactly why the GC required the waiver before letting you on site.
For how this differs from a certificate of insurance, see our comparison of COI vs. waiver of subrogation.
When You Need One
You’ll typically need a workers comp waiver of subrogation when a contract requires it. That’s common with:
- General contractors hiring subcontractors
- Commercial property owners and managers
- Large clients and vendors with strict insurance requirements
- Government or institutional contracts
If a contract requires the waiver and you can’t provide it, you may be unable to take the job — so it’s worth confirming the requirement early. Our overview of why waivers of subrogation matter covers the broader rationale.
Blanket vs. Scheduled Waivers
- Renuncia general — Applies automatically to any party you’re contractually required to waive against. Convenient if you sign many contracts, but usually costs more.
- Exención programada — Names specific parties only. Narrower, and sometimes cheaper if you only need it for one or two clients.
What Does It Cost?
A workers comp waiver of subrogation is usually added as an endorsement for an additional premium — commonly a small percentage of your workers comp premium. The exact cost depends on your carrier, your state, and whether the waiver is blanket or scheduled. Because it removes the insurer’s ability to recover losses, carriers price it in.
If you want to see how your workers comp coverage, endorsements, and certificates fit together, this baseline tool can serve as a starting reference: https://peopaygo.com/get-rate-exchange-blogs/u/step-1.
How to Add a Waiver of Subrogation to Your Workers Comp Policy
- Confirm the contract requires it and for which coverage
- Decide whether you need a blanket or scheduled waiver
- Póngase en contacto con su corredor o transportista para agregar el endoso
- Request an updated certificate of insurance that references the waiver
- Envía el COI con la exención indicada a la parte solicitante.
Preguntas Frecuentes
What is a waiver of subrogation in workers comp?
An endorsement in which your workers comp insurer agrees not to pursue reimbursement from a third party — usually a client or general contractor — after paying a claim related to your employee’s injury.
Why would a general contractor require a workers comp waiver of subrogation?
To protect themselves from being pursued by your insurer if one of your employees is injured on their site. It’s a standard requirement before subcontractors begin work.
Does a workers comp waiver of subrogation cost extra?
Usually. It’s added as an endorsement for an additional premium, often a small percentage of your workers comp premium, depending on your carrier, state, and whether it’s blanket or scheduled.
What’s the difference between a blanket and scheduled waiver?
A blanket waiver applies automatically to anyone you’re contractually required to waive against; a scheduled waiver names specific parties only and can be narrower and sometimes cheaper.
La conclusión
A workers comp waiver of subrogation gives up your insurer’s right to recover a paid claim from a third party — most often required by general contractors and commercial clients. It’s added as an endorsement, usually for a small additional premium, and can be blanket or scheduled. Confirm the requirement early, add it through your broker, and make sure your certificate of insurance reflects it.
If you want to see how bundling workers comp with payroll and certificate management through a single integrated provider simplifies endorsements like this, this baseline tool can serve as a starting reference: https://peopaygo.com/get-rate-exchange-blogs/u/step-1.
Does a contract require a waiver of subrogation? Confirm whether you need a blanket or scheduled endorsement, add it through your broker, and update your certificate of insurance.
This article is for informational purposes only and does not constitute legal or insurance advice. Waiver of subrogation rules, endorsement costs, and contract requirements vary by state, carrier, and policy and change frequently. Consult a qualified insurance broker or attorney for guidance specific to your business.
