What is a waiver of subrogation in general liability insurance?
Asked by: Prof. Elaina Schulist | Last update: December 2, 2025Score: 5/5 (16 votes)
Who would ask for a waiver of subrogation?
If your company works with third parties, such as contractors, which is common in the construction industry, they may require you to provide them a waiver of subrogation, protecting them from any liability in future accidents or injuries that may occur.
What is subrogation in general insurance?
Subrogation in insurance is a legal right of the insurance company to legally pursue a third-party responsible for the damages/insurance loss caused to the insured. Subrogation is done to recover the claim amount insurance company pays to the insured for the damages.
Why would a general contractor (GC) request a waiver of subrogation from their subcontractors?
This type of provision is included to prevent an insurance company, that has paid for a loss, from suing another party involved with the project that may have actually caused the loss.
What is an example of a waiver of subrogation clause?
1. Owner/lessor agrees to waive all rights of subrogation against Kiwanis International, the Kiwanis club and their insurers for damages to the premises to the extent that such damages are covered by the owner's/lessor's insurance or would have been covered but for the application of a deductible.
Waiver of Subrogation Explained
What is a waiver of subrogation for dummies?
A waiver of subrogation is a provision that prohibits an insurer from pursuing a third party to recover damages for covered losses. Waivers of subrogation are found in various contracts, including construction contracts, leases, auto insurance policies, and more.
Why would you not want a waiver of subrogation?
While this may eliminate any potential conflict between you and your client, it also puts your insurer at a greater financial risk, which could cost you more in premiums or even cause you to lose your insurer altogether.
Can you have a waiver of subrogation on a general liability policy?
How Waivers of Subrogation Work. Often found in general liability, commercial auto, and workers' compensation insurance. It often comes in two formats. It will be either specifically name an entity that the carrier waives its's right to subrogate against or it will be in the form of a Blanket Waiver of Subrogation.
What are the two different versions for a waiver of subrogation?
A waiver of subrogation can be categorized into two types: blanket waivers and scheduled waivers. Each serves a distinct purpose in managing risk and insurance claims.
Is subrogation good or bad?
Subrogation allows your insurer to recoup costs (medical payments, repairs, etc.), including your deductible, from the at-fault driver's insurance company, if the accident wasn't your fault. A successful subrogation means a refund for you and your insurer.
What happens if I ignore a subrogation letter?
You will want to immediately notify your own insurer to determine how they can assist you. A subrogation claim is not going to go away on its own. If you ignore the letter, the insurer will file a lawsuit against you, the party being held responsible, and the insurer will win, almost every time.
How do insurance companies handle subrogation?
Subrogation is a term describing the right held by most insurance carriers to legally pursue a third party that caused an insurance loss to an insured. This allows the insurance carrier to recover the amount of the claim it paid to the insured for the loss.
Do you get your deductible back if you're not at fault?
Yes, if you have to pay your deductible and you were not at fault, you may be able to get it back from the at-fault driver's insurance company. This is called subrogation. Your insurance company will pursue the at-fault driver's insurance company to recover the money paid for the damages, including your deductible.
How much does a waiver of subrogation cost?
BLANKET WAIVER OF SUBROGATION
Most insurance companies charge a minimum premium of at least $300 for a blanket WOS and add 2-3% on the policy's net rates for the blanket endorsement.
What is a subrogation in simple terms?
"Subrogation," or "subro" for short, refers to the right your insurance company holds under your policy — after they've paid a covered claim — to request reimbursement from the at-fault party.
How do I write a subrogation waiver?
The Waiver of Subrogation Endorsement must include the names of the insured, the insurer, and the policy number, as well as the date of the endorsement. It should also include a description of the property to which the waiver applies.
What are exceptions of subrogation?
Exceptions to the doctrine of subrogation
The terms in the contract can exclude or restrict the right of subrogation in certain situations, such as when a specific type of damage is not covered. These types of contractual limitations constrain the right to subrogation.
Is a waiver of subrogation the same as a certificate of insurance?
Both a Certificate of Insurance (COI) and a Waiver of Subrogation (WOS) are vital in insurance and risk management, but they serve different purposes. A COI provides proof of insurance coverage, while a WOS protects business relationships by waiving the insurer's right to seek recovery from third parties.
Why would someone want a waiver of subrogation?
Clients may want your business to waive your right of subrogation so they will not be held liable for damages if they are partially responsible for a loss.
What is the black law of subrogation?
According to Black's Law dictionary, the definition of subrogation is “the principle under which an insurer that has paid a loss under an insurance policy is entitled to all the rights and remedies belonging to the insured against a third party with respect to any loss covered by the policy”.
What are exclusions on a general liability policy?
Preventable risks that lead to third-party bodily injury or property damage claims are excluded under general liability coverage. So, if a customer slips on the icy steps outside your store because you didn't put salt or sand down, the claim wouldn't be covered.
What is the difference between additional insured and waiver of subrogation?
Waivers of subrogation are intended to protect each party from claims by the other; additional insured status is protection against third party claims.
How many limits are found in a CGL policy?
Six Interrelated Limits
The CGL policy lists on the declarations six different limits. While the limits are separately listed, it is important to recognize that the limits are all interrelated. That is, payment of damages on one limit will also affect another limit.
Why would an insurance company choose to subrogate?
Subrogation allows insurance carriers to recoup costs from the party causing the loss. This process can influence the amount you receive from your insurance claim. This is especially true in personal injury and auto accident scenarios. Speak to a personal injury attorney about the subrogation process.