Business insurance • Contracts and certificates
Waiver of Subrogation: What It Means, What It Costs, and When Contracts Require It
A waiver of subrogation is a contract term, added to your policy by endorsement, that stops your insurance company from trying to recover what it paid on a claim from another party you work with, such as a general contractor, client, or landlord. Many contracts require one, and it often raises your premium, which Hiscox says typically ranges from 2% to 10% of the base premium.
This guide explains subrogation, how a waiver works on general liability and workers’ compensation policies, blanket versus specific waivers, state limits, and how to add one. Blake Insurance Group is an independent agency, not a law firm; have an attorney review contract language.
Request a quote with a waiver of subrogation
Tell us your business and the contract requirements you need to meet, and a licensed agent will follow up. Submitting the form does not bind coverage.
If the form does not load, call 888-387-3687, Monday through Friday, 9:00 to 5:00, or email info@blakeinsurancegroup.com.
Prefer to quote online yourself?
Start a business insurance quote online with one of our partners, without waiting for a call back.
Get a quote from ERGO NEXT →General liability, workers’ compensation, business owner’s policies, professional liability, and commercial auto.
Start an application with First Connect →Quotes from multiple insurance carriers through our First Connect portal.
Sponsored. Each link opens the partner’s website in a new tab, where its terms and privacy policy apply. Blake Insurance Group may be compensated if you buy.
What subrogation is
When your insurer pays a claim, it normally steps into your shoes and can sue whoever else caused the loss to get its money back. That right is called subrogation. A waiver of subrogation gives up that right against a party named in your contract, so a loss on the job doesn’t turn into a lawsuit between the businesses working together.
Example. Your employee is hurt on a site partly because of the general contractor’s scaffolding. Your workers’ comp insurer pays the claim. Without a waiver, it could sue the general contractor to recover. With a waiver in favor of the contractor, it can’t. The waiver bars only the insurer; it does not stop your injured employee from suing a third party (IRMI: examining WC waivers of subrogation).
Which policies use a waiver
| Policy | Typical endorsement |
|---|---|
| General liability | CG 24 04, Waiver of Transfer of Rights of Recovery Against Others to Us |
| Workers’ compensation | WC 00 03 13, Waiver of Our Right to Recover From Others |
| Commercial auto and property | Insurer or ISO waiver endorsements, or policy wording that allows written waivers |
See the WC 00 03 13 form (NCRB). Form numbers and editions vary by insurer and state.
Blanket vs. specific waivers
- Blanket waiver. Applies to anyone you agree in a written contract to give a waiver. It is easier to manage but usually costs more.
- Specific (scheduled) waiver. Names a particular client or project. It costs less and limits what you give up.
Hiscox notes that waivers are negotiable and that an insurer can decline one if the risk is too high (Hiscox: what is a waiver of subrogation).
How much a waiver of subrogation costs
A waiver increases the insurer’s exposure, so many insurers charge for it. Hiscox says premium increases typically range from 2% to 10% of the base premium, with blanket waivers at the higher end (Hiscox: what is a waiver of subrogation). Pricing varies by insurer, state, and policy. Build the cost into your bid when a contract requires one.
State limits on workers’ comp waivers
Some states restrict waivers of subrogation on workers’ compensation (IRMI: examining WC waivers of subrogation):
- New Hampshire prohibits them.
- Kansas (in certain instances), Kentucky, New Jersey, and Missouri (for construction risks) have found them void as against public policy.
- Maine and Wisconsin have allowed employers to enforce liens even when a waiver is in place.
Rules change, so confirm current law in each state where you work.
How to add a waiver of subrogation
- Find the waiver wording in the contract and which policies it applies to.
- Ask your agent for a blanket or specific endorsement on each policy listed.
- Get a certificate that shows the waiver and a copy of the endorsement for the client.
- Pair it with any required additional insured and primary and noncontributory wording.
Waiver of subrogation FAQs
What does a waiver of subrogation mean?
It means your insurer gives up its right to recover a claim payment from a specific party, such as a client or general contractor, even if that party helped cause the loss.
Does a waiver of subrogation cost extra?
Often. Hiscox says premium increases typically range from 2% to 10% of the base premium, depending on the policy and whether the waiver is blanket or specific.
Is a waiver of subrogation the same as additional insured?
No. Additional insured status extends your coverage to the other party; a waiver stops your insurer from suing them. Contracts often require both.
Can every business get a waiver of subrogation on workers’ comp?
Not everywhere. Some states, such as New Hampshire, prohibit or limit workers’ comp waivers.
Does a waiver stop my employee from suing the other party?
No. A workers’ comp waiver bars the insurer’s recovery, not the injured employee’s own claim.
Related guides
Important information
Compensation. Links in the partner quote box near the top of this page are sponsored, and Blake Insurance Group may be paid if you make a purchase. Sponsored placement does not affect the other information on this page.
Independent agency. Blake Insurance Group LLC is an independent insurance agency. Licensed insurance producer NPN 16944666. Licensed states: AZ, AL, TX, CA, NY, OH, FL, NC, VA, GA, OK, NM, IA, KS, MI, NE, SC, SD, WV, IL, NJ, PA, TN, and WA. Which insurance companies we can quote depends on our current appointments, the product, and your state. Mentioning a company on this page does not mean we represent it.
Cost figures. Published averages and ranges are cited from the sources named, as of the dates shown. They are not quotes and may not reflect your price, which depends on the insurer, your state, your business, your payroll and revenue, your limits, and your claims history.
Not legal advice. Contract, classification, and workers’ compensation rules summarized here are general information as of November 2026 and vary by state. Have an attorney review contracts and status questions.
Availability. Coverage, prices, discounts, and eligibility vary by insurer, state, and applicant, and are subject to underwriting. The issued policy controls.
Your next step
Send us your contract’s insurance requirements, and a licensed agent will help you add the waivers and endorsements it calls for.
