Contract Language Decoded
What Is a Waiver of Subrogation?
A waiver of subrogation is an endorsement that prevents your insurance company from suing a third party (usually the GC or property owner) to recover money the carrier paid out on a claim involving your work.
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Waiver of Subrogation: What It Means for Contractors
Subrogation is the legal right of your insurance carrier to step into your shoes after paying a claim and pursue whoever actually caused the loss. If your GL policy pays $50,000 for property damage on a jobsite and the carrier determines the GC’s site supervisor caused the accident, the carrier can sue the GC to recover that money. A waiver of subrogation is an endorsement that gives up that right in advance for the parties you name. Learn more about general liability insurance for contractors or scroll down for the details on this question.
Almost every commercial GC, property manager, school district, and municipal contract now requires a waiver of subrogation alongside additional insured status. The reason is simple: the GC does not want to be sued by your insurance company two years after the job wraps up. By requiring the waiver, the GC ensures that even if your carrier pays a claim, that money stays paid and the GC is not chasing legal bills years later.
On a contractor GL policy the waiver is added by endorsement — usually a blanket waiver of subrogation that automatically applies to any party you have agreed in writing to waive against. Carriers may charge a small additional premium (often 1–5% of the GL premium) for the blanket waiver, though many include it at no charge for established contractor accounts. A scheduled waiver naming one specific party is sometimes free.
From a practical standpoint, waivers of subrogation are routine and you should not be afraid of them. They do not change your coverage, do not lower your limits, and do not affect what your policy will pay. They simply tell the carrier, ‘After you write the check, do not chase the GC.’ The two questions to ask before you sign a contract requiring a waiver are: (1) does my policy already include a blanket waiver, and (2) if not, what will the endorsement cost? Trade Safe handles both questions in a single call.
One last thing: a waiver of subrogation only binds your carrier. It does not stop the injured party from suing the GC directly, and it does not waive any rights between you and the GC outside of the insurance recovery. It is purely an insurance-to-insurance handshake.
When in Doubt — Just Send Us the Contract
Trade Safe reviews insurance specs in contracts at no charge. Send us the insurance section of any contract you are about to sign and we will tell you exactly what endorsements you need, whether your current policy already includes them, and what (if anything) it will cost to add what is missing.
Related Endorsements That Usually Come With Waivers
Waivers of subrogation almost never travel alone. Here is what else most GC contracts will require in the same paragraph.
Additional Insured Status
The GC will want to be added as an AI on your GL policy on a primary and non-contributory basis — meaning your coverage responds first.
Primary & Non-Contributory
This wording ensures your policy pays first and the GC’s coverage is not tapped, even if both policies technically apply.
Notice of Cancellation
Most contracts require 30 days written notice to the GC if your policy is going to cancel or non-renew — an endorsement carriers add for free.
Per-Project Aggregate
Bigger jobs often require a per-project aggregate so one big claim on Project A does not eat the limits available for Project B.
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