Definition

What is a waiver of subrogation in construction?

Short answer

A waiver of subrogation is an endorsement where an insurer gives up its right to recover a paid claim from another party, such as the general contractor or owner. On construction jobs it keeps a sub’s insurer from paying a claim and then suing you. It comes from an endorsement on the policy, so ask for the form.

Written by Liam · CertChase · Last reviewed October 3, 2026

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Subrogation in plain English

When an insurer pays a claim, it can step into the insured’s shoes and try to recover the money from whoever caused the loss. That right is called subrogation. A waiver of subrogation removes that right against named parties.

A simple example

A sub’s employee is hurt and workers’ comp pays. Without a waiver, the workers’ comp carrier might try to recover from the general contractor it blames. With a waiver in place for the general contractor, the carrier agreed not to.

Where you will see it

On workers’ comp policies, as a waiver endorsement for named parties.
On general liability and property policies when the contract requires it.
In the certificate description box, noted as a waiver in favor of the certificate holder.

What to check

Is the waiver required in your subcontract?
Does the policy have an actual endorsement, not just a note on the certificate?
Is the right party named, with its exact legal name?
Does the waiver apply to the policies you require?

Waivers often travel with primary and noncontributory wording. Our older combined page, waiver of subrogation and primary and noncontributory, covers both quickly. Some states limit these provisions, so check your state page.

Not legal or insurance advice. This is general information. Your contract, your state and your policy decide what applies to you. Ask your broker or attorney.

Frequently asked questions

What is a waiver of subrogation?

An insurer’s agreement not to pursue another party to recover a claim it has paid.

Why do contractors ask for it?

It keeps a sub’s insurer from recovering paid claims from the contractor, which protects the contractor’s own insurance and relationships.

Does a waiver of subrogation cost extra?

Often there is a charge. Subs should ask their agent early, because it can affect premium.

How do you define waiver of subrogation?

A waiver of subrogation is an insurer’s agreement not to recover what it paid on a claim from a named party, such as the general contractor or owner.

Keep reading

01GuideWaiver of subrogation, primary and non-contributoryTwo clauses that appear in almost every subcontract. What waiver of subrogation and primary and non-contributory mean, and how to check them.02DefinitionPrimary and noncontributoryPrimary and non-contributory wording decides whose policy pays first. What it means, why contractors require it and how to check it.03GuideAdditional insured endorsementsWhat additional insured status means, why a certificate does not prove it, and which endorsements to request from subcontractors.04Template guideInsurance clause structureWhat the insurance clause in a subcontractor agreement should cover, in plain English: coverages, limits, endorsements, certificates and lapse.05GlossaryGlossaryPlain-English meanings of the insurance words contractors see on certificates, endorsements and subcontracts, from ACORD 25 to waiver of subrogation.

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