What is a waiver of subrogation?

How does subrogation normally work?

Subrogation is a routine part of insurance. When a carrier pays its insured for a covered loss, it acquires the insured’s right to seek reimbursement from whichever party caused the damage. For example, if a subcontractor’s policy pays for damage on a jobsite, that carrier can then try to recover its payment from another party it believes was at fault—potentially the general contractor. A waiver of subrogation removes that right of recovery against the named party in advance.

Why does a waiver of subrogation matter for general contractors?

A waiver keeps a loss from boomeranging back onto the GC. If a subcontractor’s insurer pays a claim and then subrogates against the general contractor, the GC is dragged into a dispute—and its own insurer may end up paying—even though the sub’s policy already responded. Requiring the sub’s carrier to waive subrogation against the GC means the loss stays where the contract intended: with the subcontractor’s coverage.

Waiver of subrogation is one leg of a three-part risk-transfer package GCs typically require, alongside additional insured status and primary and non-contributory coverage. Together they push claims arising from a sub’s work onto the sub’s policy and keep them there.

Where does the waiver actually live?

The waiver is created by a policy endorsement, not by the certificate. For commercial general liability, a common form is the CG 24 04 (Waiver of Transfer of Rights of Recovery Against Others to Us), which can be issued on a scheduled or blanket basis. Workers’ compensation policies use their own waiver-of-subrogation endorsement. On the ACORD 25, the “SUBR WVD” column flags that a waiver applies, but confirming it requires the endorsement or policy.

What does Wardly check?

Wardly checks each certificate of insurance for waiver-of-subrogation indicators—the SUBR WVD flag and supporting notes—and compares them to the requirement you set per line of coverage. Every subcontractor is reviewed the same way, and the certificate is graded A–F so missing waivers stand out immediately.

Common mistakes

• Assuming the contract clause alone creates a waiver—the policy must actually be endorsed to waive subrogation.
• Requiring a waiver on general liability but overlooking workers’ compensation, where subrogation claims are common.
• Accepting the SUBR WVD checkbox without verifying a blanket or scheduled waiver endorsement is in force.
• Letting the endorsement lapse at renewal because no one re-checks the new certificate.

Track it automatically

Verifying waivers on every certificate, every renewal, is exactly the kind of repetitive check software handles well. Wardly does it for free—see how it compares with SmartCompliance on the comparison hub.

This is general information, not legal or insurance advice.