Waiver of Subrogation: What It Means on a COI | COI File

What is a waiver of subrogation on a COI? How to verify it, when to require it, and what happens without it, a practical guide for property managers and contractors.

Most property managers know to check coverage limits and expiration dates on a COI. Far fewer know to check for a waiver of subrogation, or understand what happens when one is missing.

This gap can be expensive. A vendor's insurer can and will pursue your organization after paying a claim if there's no waiver in place. This guide explains what a waiver of subrogation is, where to find it on a certificate of insurance, and when you need to require it.

What Is Subrogation?

Subrogation is the legal right of an insurance company to pursue a third party after paying its insured's claim, to recover the money it paid out.

Here's how it plays out in practice: A vendor's employee slips and falls at your property. The vendor's workers' compensation insurer pays the employee's medical bills and lost wages. The insurer's attorneys then investigate the accident and determine that your property's wet floor (an unresolved maintenance issue) contributed to the injury. The insurer then sues your organization to recover the $200,000 it paid out.

Your organization didn't hire this employee. You didn't manage their safety training. But you're now facing a six-figure lawsuit from an insurer you've never heard of, because there was no waiver of subrogation on the vendor's COI.

What Is a Waiver of Subrogation?

A waiver of subrogation is an endorsement on an insurance policy that gives up the insurer's right to pursue third parties after paying a claim. When a vendor obtains a waiver of subrogation in your favor, their insurer agrees in advance that it won't come after your organization, even if it determines you contributed to the loss.

The waiver is added to the policy as an endorsement, an amendment that modifies the standard policy language. It appears on the ACORD 25 certificate in the "Description of Operations" box or as a separate endorsement page.

Where to Find It on a COI

When reviewing a certificate of insurance, look in the "Description of Operations / Locations / Vehicles / Special Items" section (Box 23 on the ACORD 25). You're looking for language like:

  • "Waiver of Subrogation applies in favor of [Your Organization Name]"
  • "Blanket Waiver of Subrogation included where required by written contract"
  • "CG 24 04 Waiver of Transfer of Rights of Recovery Against Others To Us is attached"

If you see "per contract" as the only notation, without explicit endorsement language, this may not be sufficient. Ask the vendor's broker to confirm the endorsement is actually attached to the policy and specify the endorsement form number.

Waiver of subrogation should be endorsed separately on each coverage type where you require it:

  • General Liability, almost always required
  • Workers' Compensation, especially important (this is where most subrogation claims originate)
  • Auto Liability, required when vendors drive on your behalf
  • Umbrella/Excess, required if GL and WC have waivers (umbrella should follow form)

Blanket vs. Scheduled Waivers

There are two types of waiver of subrogation endorsements:

Blanket waiver of subrogation, applies automatically to all parties when required by a written contract. This is the most practical option for vendors who work with multiple clients. It means the vendor doesn't have to add each client specifically to the policy. Look for language like "Blanket Waiver of Subrogation where required by written contract."

Scheduled waiver of subrogation, lists specific named parties. The vendor's broker adds your organization's name explicitly to the endorsement. More specific, but requires action for each client relationship. If the vendor uses this approach, verify your organization's name appears exactly as it does in your contract.

Either type is generally acceptable. Blanket waivers are more common because they're easier for vendors to manage.

When to Require a Waiver of Subrogation

Require waivers of subrogation whenever:

  • Your standard vendor contracts include this requirement (review your contracts with an attorney)
  • The vendor's employees perform work on or in your property
  • There's any potential for overlapping liability between your organization and the vendor
  • The scope of work involves risk of injury, property damage, or environmental harm

For most property managers, general contractors, and facilities managers, the answer is: require waivers of subrogation on every vendor. The exceptions are narrow (very low-risk, low-value engagements) and should be approved by your attorney.

Handling Vendor Pushback

Some vendors will tell you they "can't" add a waiver of subrogation or that it "costs too much." Here's how to handle that:

Cost concern: Waiver of subrogation endorsements typically cost $50–$300/year depending on the coverage type and carrier. This is a routine cost for professional vendors. If a vendor is unwilling to incur this cost to work with you, consider whether they're the right vendor for your project.

"Can't get it" concern: Not all insurers offer waiver of subrogation endorsements, and some policies exclude them. If a vendor's current insurer can't or won't add it, the vendor has two options: find a carrier that will, or accept that they won't work on projects that require it. Don't waive the requirement, the risk to your organization doesn't decrease because the vendor's insurer is inflexible.

Tracking Waiver of Subrogation in Your COI Process

Add "Waiver of Subrogation (Yes/No)" as a required field in your COI review checklist. It's easy to overlook when you're checking limits and dates. Our free COI requirements checklist includes this field.

If you use COI File to manage your vendor certificates, you can configure waiver of subrogation as a required compliance item. The system flags any COI that's missing the endorsement, so it can't slip through during a busy period.

Frequently Asked Questions

A waiver of subrogation on a certificate of insurance is an endorsement on the vendor's insurance policy that prevents the insurer from suing your organization after paying a claim. Without it, if a vendor's insurer pays a claim for an accident that partially involved your property or actions, the insurer has the legal right to pursue your organization to recover what it paid.
No, waiver of subrogation is a contractual requirement, not a legal one. Your vendor contracts specify whether it's required. However, most well-drafted commercial contracts in construction, property management, and facilities management include waiver of subrogation requirements to protect all parties from cross-claims after a loss.
Yes, in most cases. Waiver of subrogation endorsements are additional policy endorsements that the vendor's insurer charges for, typically a modest premium addition. Because it costs the vendor money, some vendors resist providing it. Make it clear in your contracts that waiver of subrogation is a non-negotiable requirement before work begins.
Look in the "Description of Operations / Locations / Vehicles" box on the ACORD 25 form. A waiver of subrogation will typically be noted as "Waiver of Subrogation applies in favor of [Your Organization Name]" for each applicable coverage type. It may also appear as a separate endorsement page attached to the certificate. If you don't see it explicitly stated, ask the vendor's broker to confirm it's on the policy.
Additional insured adds your organization to the vendor's policy as a covered party, so their insurance defends you if you're sued because of the vendor's work. Waiver of subrogation prevents the vendor's insurer from turning around and suing you after paying a claim. They address different risks: additional insured protects you from third-party claims, waiver of subrogation protects you from the vendor's own insurer. You typically need both.
Yes, and this is especially important. Without a Workers' Compensation waiver of subrogation, if a vendor's employee is injured on your property and files a workers' comp claim, the insurer that pays the claim could sue your organization for contributing to the injury. A WC waiver of subrogation prevents this. Require it on workers' compensation for every vendor that sends employees to your property.
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Firdaosh Bano

COI Compliance Specialist

Firdaosh Bano is a COI compliance specialist and the founder of COI File. She spent 6 years managing vendor compliance for commercial properties - tracking 2,000+ COIs across 150+ properties in spreadsheets before building the tool she wished she'd had. She writes about certificate of insurance compliance, vendor risk management, and making insurance tracking less painful for small teams.

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