Waiver of Subrogation

A waiver of subrogation is an endorsement that can be added to some policies such as General Liability, Auto Liability, Workers Compensation and sometimes even Property. A waiver of subrogation means that the insurer gives up their right to subrogate against the party that may have been negligent or caused the loss. Let's say ABC Construction is on a job site where XYZ Construction is also working and ABC provided XYZ with a waiver of subrogation. An employee of ABC Construction falls and breaks his leg because an employee of XYZ Construction left a piece of equipment out in the open and did not properly mark it. ABC Construction's workers compensation policy is going to pay for the employee. Since this was technically XYZ's fault the insurer could go back to XYZ and get their costs back, but since a waiver of subrogation is in place ABC's insurer has no way of getting their costs back.