What is a waiver of subrogation and why might I need one?
A workers’ comp waiver of subrogation is a document that states that you are waiving your right for your insurer to seek compensation from a third party that might have been involved in a workplace accident or injury.
When a claim is filed and accepted, we do all we can to help restore the injured worker. While the specific help rendered depends on the type of claim, that help may come in the form of disability benefits, medical cost coverage, or other types of assistance. In certain cases, we may seek to recoup our costs from a third party who was involved in the injury. This is called 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.
Types of waivers
We offer two types. Our table below describes the difference between the two and in what situations each might be of service:
- A specific waiver, Endorsement 2570.This names the third party you have a contract to perform work. It applies only to the premium developed from work performed to the specific entity named in the endorsement.
- A blanket waiver, Endorsement 2572. This does not name a third party. It applies to all jobs where you perform work under a contract with a third party who requires a waiver of subrogation.
If you request the blanket waiver when binding your policy, your policy will include the blanket waiver endorsement and the related premium charge. You can only request a blanket waiver at policy inception. If you request the blanket waiver endorsement for your policy mid-term, it won’t be added until your next renewal. Specific waivers can be processed at any time.
How to request a waiver
If you’re working with an underwriter, please contact them to request a waiver. If you don’t have an underwriter assigned to you, please call customer support at (888) 782-8338.
Which waiver is best for you?
Typically, you want to choose the waiver that will be the most cost effective for you. Here are the differences:
| Waiver Type | Types of policyholders that typically get these | What it does | How surcharges are calculated |
| Blanket Waiver of Subrogation |
1. Firms that perform a lot of work requiring a waiver of subrogation throughout the year. 2. Firms that bid on contracts with a small bidding window who cannot wait for a specific waiver to be produced. 3. Firms that want to reduce administrative complexity. |
Replaces the need to name specific third parties for a valid waiver of subrogation and eliminates the need to provide segregated payroll to the premium auditor. |
A 2% surcharge is added to the total annual policy premium. At the time of quote, this amount is calculated based on your estimated annual premium, but the final bill will use the total annual policy premium as the basis for this premium surcharge. |
| Specific Waiver of Subrogation | Firms that do not have many clients requiring a waiver of subrogation. | If a policy does not have a blanket waiver of subrogation, each time a policyholder enters into a contract with a third party who requires a waiver, the policyholder must contact us and request the specific waiver of subrogation gets added for this specific third party. | A 3% surcharge is calculated based upon the payroll generated during the work performed for each named third party with a specific waiver of subrogation. |
Answers to commonly asked questions
Can I delete a waiver?
No. We can’t delete a waiver of subrogation endorsement during the policy term.
Why can’t the waiver continue into the next policy year?
Some endorsements, such as those for a waiver of subrogation and agreed payroll, will not automatically roll over to the renewing policy year because there are surcharges that require policyholder request and acceptance. Contact us or broker to request these endorsements.