Guides / COI basics

Waiver of Subrogation Explained for Contractors and Property Managers

By SubCover HQ · Updated Oct 27, 2026 · 4 min read

"Waiver of subrogation" shows up in almost every subcontract and vendor agreement, and as a little "SUBR WVD" column on every certificate of insurance. Most people sign it without being totally sure what it does. Here's the plain-English version.

First: what is subrogation?

When an insurance company pays a claim for its customer, it generally gets the right to step into its customer's shoes and recover that money from whoever caused the loss. That's subrogation.

Example: a plumbing sub's employee is injured on your job site. The sub's workers' comp insurer pays the employee's medical bills and lost wages. If the insurer believes your site conditions contributed, it may try to recover what it paid by going after you.

What a waiver of subrogation does

A waiver of subrogation is an agreement that the insurer will not pursue recovery from a specific party (you) after paying a claim. In the example above, the sub's workers' comp insurer would pay the claim and not come after you.

Why it's standard:

• It keeps losses on the policy of the party responsible for the work and its workers.
• It avoids lawsuits between parties working on the same project.
• It often goes together with additional insured and primary and noncontributory requirements, all aimed at the same goal: the sub's insurance responds first.

The contract waiver vs. the policy waiver

There are two pieces, and you generally need both:

1. The contract: your subcontract or vendor agreement says the sub waives rights of recovery against you and will get its insurers to waive subrogation.
2. The policy endorsement: the sub's insurer agrees to it. Without the endorsement, a sub that signed your waiver may be in breach of its own policy, and the insurer may still pursue recovery.

Common endorsements include ISO CG 24 04 (waiver of transfer of rights of recovery) for general liability, NCCI WC 00 03 13 for workers' compensation, and a similar endorsement for commercial auto. Insurers may use their own forms, and many offer blanket waivers that apply whenever the insured agreed to one in a written contract.

Where it shows up on a COI

On the ACORD 25, each coverage row has a SUBR WVD column. A "Y" means the agent is indicating a waiver applies to that policy. The description box may also say something like "Waiver of subrogation applies in favor of the certificate holder where required by written contract."

As with additional insured status, the certificate doesn't create the waiver. The endorsement does. For important jobs, ask for a copy. (Our ACORD 25 guide walks through every column.)

Which policies should have it?

Common practice in construction and property services is to require waivers on:

• General liability
• Workers' compensation (often the most important, given how common jobsite injuries are)
• Commercial auto
• Umbrella/excess, where required by contract

Your prime contract with the owner may require you to get waivers from your subs, so check those flow-down requirements.

Things to watch out for

• State rules on workers' comp waivers. A few states restrict or limit waivers of subrogation on workers' compensation, and rules can change. Your broker will know what's allowed where you work.
• Your own policy. Waiving rights against others can affect your own insurer's recovery rights. Most commercial policies allow waivers made in a written contract before a loss, but confirm with your broker.
• Timing. Many blanket endorsements only apply if the written agreement was signed before the loss. Get contracts signed before work starts.
• Extra premium. Some insurers charge a small fee for specific waivers. That's a normal cost of doing business for subs, not a reason to skip it.

What to request from each sub

1. A COI with "Y" in SUBR WVD for each required policy.
2. The waiver endorsements (or confirmation that a blanket waiver applies by written contract).
3. A signed contract that includes the waiver language.

How SubCover HQ helps

We check the SUBR WVD column and endorsement wording on every certificate against your requirements, flag anything missing, and chase the agent until it's fixed, so the gap gets caught before a claim instead of after.

Frequently asked questions

Is a waiver of subrogation the same as being additional insured?

No. Additional insured status lets you claim coverage under the sub's policy. A waiver of subrogation stops the sub's insurer from suing you to recover what it paid. They protect you in different ways, which is why contracts usually require both.

Who asks for the waiver?

The party hiring the work, such as the owner, GC, or property manager, normally requires it in the contract. The sub then asks its agent to add the endorsement, or confirms a blanket endorsement already applies.

What happens if a sub signed my contract but its policy has no waiver?

The contract waiver may still bind the sub, but the insurer, which never agreed to it, may try to recover from you anyway. It can also put the sub in breach of its own policy terms. Confirming the endorsement avoids that mess.

Does it cost the sub anything?

Sometimes. A specific waiver endorsement may carry a small premium charge, while blanket waivers are often built in. For most small trades the cost is modest compared with the protection it gives the parties above them.

What should my files show?

A current certificate with SUBR WVD marked for each required policy, a copy of the endorsement or written confirmation of a blanket waiver, and the signed contract containing the waiver language, all dated before work began.

This is general information, not insurance or legal advice. Talk to your broker and attorney about what your contracts should require.