A waiver of subrogation is your insurer agreeing that, once it pays your claim, it won't turn around and sue the other party to your contract to get the money back. Subrogation is the right an insurer picks up, from the policy or by law, after it pays a loss. It steps into your shoes and goes after whoever caused the damage.[1] The waiver turns that right off for one named party, or for anyone you have a written contract with. IRMI describes it as "an acknowledgment by an insurer that it has no right to subrogate against a liable third party."[2] Owners and general contractors insist on it because they don't want your policy to pay a claim on Monday and your carrier to sue them over it on Tuesday.
You give the waiver by adding an endorsement to each policy the contract names. Most often that's the CG 24 04 on your general liability policy and the WC 00 03 13 on your workers' compensation policy. If you're bidding a job that asks for one and your current policy doesn't have it, request a general liability quote that builds the waiver in so the certificate is right the first time. Contractors can start from our contractor general liability page, where several programs offer a blanket waiver.
Waiver of subrogation
A policy endorsement, or a policy provision, under which the insurer gives up its right to recover a paid loss from a specific third party, usually because the insured agreed to that waiver in a written contract signed before the loss.
Why do owners and general contractors require a waiver?
Say a subcontractor's employee gets hurt on a job site. The sub's workers' comp carrier pays the medical bills and wage benefits. Without a waiver, that carrier can go after anyone whose negligence helped cause the injury to get its money back, and the GC running the site is the obvious target. A waiver of subrogation in favor of the GC closes that door. The loss stays with the policy that was bought to pay it.
General liability and property claims work the same way. Whoever sits higher up the contract chain priced the project assuming each trade's insurance would be the first and last stop for that trade's losses. The waiver is how they make sure that's true. IRMI puts it plainly: the other contracting party wants "proof - in the form of a waiver of subrogation from the insurer," not just a waiver clause between the two businesses.[2]
You'll usually see the waiver alongside two other requirements: additional insured status and primary and noncontributory wording. With all three in place, the lower-tier contractor's policy pays first, the upper-tier party is protected directly, and the lower-tier carrier can't claw the money back.[4]
Which endorsement delivers the waiver on each policy?
Every policy line has its own waiver endorsement, and your certificate of insurance should show the right one for each line the contract lists. Our certificate of insurance guide covers how the waiver appears on the ACORD 25.
| Policy | Endorsement | What it does | Blanket version available? |
|---|---|---|---|
| Commercial general liability | CG 24 04 (Waiver of Transfer of Rights of Recovery Against Others to Us) | Waives the insurer's recovery right against the person or organization shown in the schedule for losses arising out of your ongoing operations or "your work" for that party | Yes, when the schedule reads "any person or organization when required by written contract" |
| Workers' compensation | WC 00 03 13 (Waiver of Our Right to Recover from Others) | Waives the carrier's recovery right for injuries to your employees connected to work you perform for the scheduled party | Yes, most carriers offer a blanket schedule |
| Business auto | Carrier-specific waiver endorsement to the business auto coverage form | Waives recovery for auto losses arising out of work for the scheduled party | Varies by carrier; ask for the form number before the certificate is issued |
Two limits trip people up when certificates get reviewed. First, the GL waiver is tied to your operations or work for the scheduled party. It doesn't waive recovery on unrelated claims. Second, the endorsement only matters where the insurer would otherwise have a subrogation right. If the other party caused a loss your policy never pays, there's nothing to waive.
For more on the workers' comp version, including why some contractors worry about their experience mod, read the waiver of subrogation glossary entry and our experience mod guide.
Blanket or scheduled: which should you carry?
| Scheduled waiver | Blanket waiver | |
|---|---|---|
| Who is covered | Only the names typed into the endorsement schedule | Any person or organization your written contract requires you to waive against |
| Paperwork per project | A new endorsement request and certificate for each contract | A certificate referencing the existing blanket endorsement |
| Risk of a gap | High if a project starts before the endorsement is issued | Low, as long as the contract is signed before the loss |
| Typical fit | One or two long-term customers | Trade contractors, service firms, anyone bidding regularly |
| Premium | Charged per added party on some policies | A single charge, or included, depending on carrier and line |
The blanket version has a condition tucked into it. The waiver only applies when a written contract requires it, and on many carrier forms, only if that contract was signed before the loss. A handshake deal won't trigger a blanket waiver. Neither will a purchase order signed after the incident. Keep each signed contract on file with the certificate you issued for it.
How much does a waiver of subrogation cost?
There's no single market price. It depends on the carrier, the policy line and whether the waiver is blanket or scheduled. Some programs throw it in at no extra charge. For example, one excess and surplus lines contractors program published by Blitz Insurance advertises an additional insured bundle of blanket additional insured, primary and noncontributory, and waiver of subrogation at no charge.[5] On workers' comp, carriers commonly charge a percentage of the premium for the work you do for the party being waived. Each carrier's filed rules set that percentage and any minimum charge, so any figure you see online is that carrier's number, not a rule.
The bigger cost is indirect. When your carrier can't recover a loss from whoever caused it, the whole loss stays on your record. That can affect your renewal pricing and, on workers' comp, your experience modification rate. Build the waiver into your bid. Don't refuse it. The contract requirement is usually non-negotiable.
How does California law treat the waiver requirement?
California's construction anti-indemnity statutes limit how much liability one party can push onto another by contract. Civil Code section 2782 voids construction-contract clauses that indemnify a party for its own sole negligence or willful misconduct, and later amendments limit indemnity for a public agency's or private owner's active negligence.[6] Section 2782.05 does the same for subcontractor-to-general-contractor indemnity on contracts entered into on or after January 1, 2013.[3]
Those statutes deal with indemnity, not insurance. Section 2782.05 lists exceptions, and one of them preserves "provisions in a construction contract that require the promisor to purchase or maintain insurance," including additional insured endorsements for ongoing and completed operations.[3] A requirement to carry a waiver of subrogation falls on the insurance side of that line. That's why California contractors still see it on nearly every subcontract, even though the indemnity clauses next to it have been narrowed. IRMI notes that in some states, anti-indemnity laws reach insurance requirements too. If you work across state lines, check each state. Don't assume California's rules come with you.[7] Our hold harmless agreement guide walks through the indemnity side in detail.
What should you check in the contract before you sign?
Find every waiver requirement in the contract
Go through the insurance exhibit and the indemnity article. Write down which policies the waiver applies to (GL, workers' comp, auto, umbrella, property) and in whose favor (owner, GC, lender, their officers and agents).
Match each requirement to an endorsement
Confirm your GL policy carries the CG 24 04 or a carrier equivalent, your workers' comp policy carries the WC 00 03 13, and your auto policy carries its waiver form. Ask your broker for copies of the endorsements, not just the certificate.
Prefer a blanket schedule
If you sign more than a couple of contracts a year, a blanket waiver tied to written contracts saves you the scramble on every project. Check whether the blanket wording requires the contract to be signed before the loss.
Check the other party's waiver runs both ways when it should
Mutual waivers between owner and contractor are common on property and builders risk policies. If the contract promises a mutual waiver, make sure the owner's policy has one too.
Keep the paper trail
Keep the signed contract, the certificate you issued and the endorsement together. A blanket waiver only helps if you can prove the written contract existed when the loss happened.
If your renewal is coming up, or a contract just showed up with an insurance exhibit you haven't seen before, start a general liability quote and send the contract with it. We build the waiver, additional insured and primary wording into the quote instead of tacking them on after binding. Our general liability insurance overview explains what the base policy does before any endorsements.
Frequently asked questions
Does a waiver of subrogation mean I am giving up my own coverage?
No. The waiver gives up the insurer's right to recover a paid loss from the named party. Your policy still pays your covered claims. Your carrier just can't go after the other party for the money afterward.[2]
Can I add a waiver of subrogation after a claim has happened?
The endorsements are built for a waiver written into a contract before a loss. Standard liability policies say you can't impair the insurer's recovery rights after a loss, and IRMI notes a post-loss waiver would violate the principle of indemnity, so a carrier won't honor one.[2] Get the endorsement in place when you sign the contract.
Is a blanket waiver of subrogation the same as blanket additional insured?
No. They're two different endorsements that often get requested together. Additional insured status gives the other party its own rights under your policy. The waiver stops your insurer from recovering against that party. Our named insured vs additional insured guide explains the first half.
Does a waiver of subrogation raise my workers' comp premium?
It can. Carriers usually charge for the waiver. And a loss that can't be recovered from a negligent third party stays on your loss record and feeds into your experience mod. Each carrier's filed rating rules set the actual charge.
Which endorsement number should appear on my certificate for the GL waiver?
The ISO form is CG 24 04, Waiver of Transfer of Rights of Recovery Against Others to Us. If your carrier uses its own forms, you'll see a different number. If the certificate reviewer pushes back, ask for the endorsement itself.
This guide is for educational purposes and summarizes standard policy forms, public sources and California statutes. Your policy's specific terms, conditions, and endorsements control, and contract enforceability depends on the wording and the facts. Talk to a licensed broker and, for contract questions, an attorney about your actual exposures.
The Bottom Line
A waiver of subrogation is your insurer's promise not to recover a paid loss from the party your contract protects. You give it by endorsement, most often the CG 24 04 on general liability and the WC 00 03 13 on workers' comp. A blanket schedule saves you from redoing paperwork on every project. California's anti-indemnity statutes narrow indemnity clauses but leave insurance requirements alone. So expect the waiver on every subcontract, price it into your bid, and make sure the endorsement is on the policy before work starts. The sentence in the contract isn't enough.
References
- 1.IRMI. “Subrogation.” https://www.irmi.com/term/insurance-definitions/subrogation ↩
- 2.IRMI. “Waiver of Subrogation.” https://www.irmi.com/term/insurance-definitions/waiver-of-subrogation ↩
- 3.California Legislative Information. “Civil Code section 2782.05.” https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=2782.05. ↩
- 4.IRMI. “Primary and Noncontributory.” https://www.irmi.com/term/insurance-definitions/primary-and-noncontributory ↩
- 5.Blitz Insurance. “Contractors Program.” https://www.blitzinsurance.com/contractors ↩
- 6.California Legislative Information. “Civil Code section 2782.” https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=2782. ↩
- 7.IRMI. “Anti-Indemnity Statute.” https://www.irmi.com/term/insurance-definitions/anti-indemnity-statute ↩