What is a waiver of subrogation?
Your client just asked for a waiver of subrogation. Let’s start at the beginning. Here’s what it means: if your insurance pays for a work injury, the insurance company may try to get money back from someone else who caused the injury. That’s called subrogation. A waiver of subrogation stops this. It means the insurance company cannot ask someone else for money after it pays the claim. It’s like saying, 'We pay the claim, and we don’t ask for money back from anyone else.'
Why would a client ask for a waiver of subrogation?
Your client might ask for this to protect themselves. Imagine you are a general contractor. One of your workers gets hurt. Your insurance pays for their injury. Without a waiver, the insurance company might try to get money from another contractor or company they think is to blame. By adding a waiver, your client tries to keep their business safe from being blamed and asked to pay more money after the claim. It helps them avoid extra costs and legal trouble.
Where is the waiver added — the policy or the certificate?
A waiver of subrogation is added to the insurance policy. The certificate shows proof of insurance, but it does not change the policy. If the waiver is needed, it must be part of the actual insurance policy. That means the insurance company must agree and write it into the policy. You cannot just add it to the certificate. The certificate only shows what the policy already says.
Is a waiver of subrogation free?
No, it is not free. It is an extra part of the insurance policy and usually costs more money. This is because it changes how the insurance company can handle claims. When you ask for a waiver, the insurance company might raise your price or charge an extra fee. It is not automatic. You must ask for it, and the insurance company must agree to include it in your policy. Always check what the cost will be before you agree to add it.
What should you do next if a waiver is needed?
If your client wants a waiver of subrogation, you need to check if it is possible with your insurance. Start by looking at your policy to see if the waiver is already part of it. If it is not there, you will need to contact your insurance company. You can use our quote tool to get more details. You can also look at the class code of your business to see if your type of work allows for such a waiver. Some types of work might not be eligible for a waiver. In those cases, you will need to tell your client it cannot be added.
What if a waiver is not available?
If a waiver of subrogation is not available for your business, you must tell your client. Some insurance companies do not allow waivers for certain types of work. This is decided by the insurance company and the state where your business is located. You cannot change the policy to include a waiver if the insurance company does not agree. In that case, the best thing you can do is tell your client it is not possible and explain why. You cannot add it to the certificate or promise it if the insurance company says no.
What should you not do if a waiver is needed?
You should not assume that a waiver is already part of your policy. Always check. You should not try to add it to the certificate alone — it must be in the policy. You should not ask for it without knowing if it will cost more money. You should not tell your client it is not possible without checking first. You must work within the policy that your insurance company offers. Always get the facts from your own policy and insurance company.
What if your client says you 'must' have the waiver?
If your client says the waiver of subrogation is required, you must check your policy. If it is not available, you must tell them it cannot be added. You cannot promise something the insurance company does not offer. You cannot add it to the certificate. You must be honest and clear. If the insurance company will not allow the waiver, you must tell your client. You cannot change the policy to include it. Your job is to know what your policy actually says and what your insurance company will do.
