Coverage
Waiver of subrogation endorsement: forms, wording and cost
A waiver of subrogation endorsement is what actually puts a contract’s waiver requirement into effect; a certificate only reports it. This guide covers the standard forms, what their wording does and does not do, what they cost and where they are restricted.
What the endorsement changes
Subrogation is your insurer’s right to recover what it paid on a claim from whoever caused the loss. The Indiana Compensation Rating Bureau’s example: a worker hurt in a crash caused by another driver gets workers’ comp benefits, and the insurer recovers its costs from that driver.
Business policies transfer your recovery rights to the insurer in a condition called transfer of rights of recovery against others to us. The endorsement switches that condition off for the parties it lists, so your insurer cannot pursue them after paying a claim. It binds only your insurer: Ryan Specialty and the law firm Matthiesen, Wickert & Lehrer note that an injured worker can still sue the general contractor or owner directly.
Waiver of subrogation endorsement forms by policy
Each line of coverage uses its own form, so a contract asking for waivers on general liability, auto and workers’ comp means three endorsements. These are the standard versions; many insurers file their own forms with similar wording.
| Policy | Form | Scheduled or blanket |
|---|---|---|
| General liability | CG 24 04 | Scheduled; blanket when the schedule says “where required by written contract” |
| Business auto | CA 04 44 | Scheduled |
| Business auto | CA 04 43 (added 2020) | Automatic when a written contract requires it |
| Workers’ comp (NCCI states) | WC 00 03 13 | Scheduled or blanket, depending on schedule wording |
| Workers’ comp, Texas | WC 42 03 04 | Scheduled |
| Workers’ comp, California | WC 04 03 06; State Fund 2570 and 2572 | Specific (2570) or blanket (2572) at State Fund |
What the wording does and does not do
Read the endorsement, not just the certificate. The details below decide whether the waiver satisfies your contract:
- CG 24 04 (05 09 edition) waives recovery only for injury or damage arising from your ongoing operations or completed work done under a contract with the scheduled party.
- WC 00 03 13 applies only to the extent you work under a written contract that requires the waiver, and states that it does not “benefit anyone not named in the Schedule.”
- California’s WC 04 03 06 requires you to keep payroll for the scheduled work separate and charges a percentage of that premium.
- CA 04 44 applies only where you waived recovery in a contract signed before the accident.
- A scheduled form protects only the names on it. If the contract also names the owner, architect or lender, each must be listed or the waiver must be blanket.
What a waiver endorsement costs
Insurers charge because the waiver gives up money they could have recovered, and workers’ comp waivers usually cost the most. Published charges include:
Illustration with made-up numbers: a subcontractor pays $12,000 a year for workers’ comp, and one job carries $3,000 of it. At State Fund’s rates a specific waiver for that job adds $90 and a blanket waiver $240. On an assigned-risk policy, 5% of $3,000 is $150, so the $250 minimum applies.
- California’s State Fund: 2% of total annual premium for a blanket waiver, or 3% of the premium on payroll for the named client’s work for a specific one. Blanket waivers can be added only at policy start.
- Assigned-risk workers’ comp in NCCI states: 5% of the premium developed on the job, with a $250 minimum per waiver, according to Tennessee’s 2015 bulletin and the Indiana rating bureau.
- Voluntary-market workers’ comp: the insurer sets its own charge; Matthiesen, Wickert & Lehrer says it is often 5% to 10% of the job’s premium, or more.
Where workers’ comp waivers are banned or limited
Most states allow waiver endorsements, but some restrict them on workers’ comp, mainly in construction. This summary comes from state regulators and a 2022 50-state survey; laws change, so confirm with the state agency before you sign.
| State | Rule |
|---|---|
| Kentucky | All workers’ comp waivers prohibited under KRS 342.700(3) |
| New Hampshire | Agreements requiring an employer or insurer to waive subrogation are barred |
| Kansas | Waiver requirements in private construction contracts are void, with limited exceptions |
| Missouri | Construction contract clauses waiving subrogation for future injuries are void |
| Oregon | ORS 30.145 voids many waiver requirements in construction contracts |
How to get the right endorsement without overpaying
Start with the contract’s insurance clause, so you buy only what you agreed to.
Waiver charges and blanket options differ by insurer, so compare them alongside the base rate. A broker such as Florin can compare quotes from several insurers, including how each handles waivers.
- List which policies need a waiver and every party the contract says must benefit.
- Count how many clients ask each year. If most do, a blanket waiver at renewal can be cheaper and faster than repeated specific ones.
- For a specific workers’ comp waiver, give your agent the client’s legal name, job address, description, class code and job payroll.
- Ask for a copy of each endorsement and send it with your certificate; some clients, such as cities, require the endorsement itself.
- Re-request waivers at renewal. State Fund, for example, does not roll them over automatically.
Frequently asked questions
Is checking the waiver box on a certificate enough?
No. The certificate only reports coverage; the waiver exists only if the endorsement is on the policy. Some clients, including cities, ask for a copy of the endorsement itself.
Does a waiver of subrogation on workers’ comp stop my employee from suing the client?
No. It only stops your workers’ comp insurer from pursuing the named party. An injured employee can still bring a negligence claim against the contractor or owner.
Can I add a blanket waiver in the middle of my policy?
It depends on the insurer. California’s State Fund adds blanket waivers only at policy start, while specific waivers can be added any time. Some carriers ask for a no known loss letter before adding a waiver midterm.
Is a waiver of subrogation the same as additional insured status?
No. Additional insured status extends your liability coverage to the client. A waiver only gives up your insurer’s right to recover from that client, and contracts often ask for both.
Figures are third-party estimates and examples, not quotes. Coverage depends on the policy terms and underwriting, and rules vary by state.