Waiver of Subrogation

In regards to insurance and contractors, if you the contractor are asked to provide a waiver of subrogation on your insurance, you are limiting the insurance companies ability to collect money form someone else who may have been at fault for a claim that your carrier has (or will) pay.

In other words if you are working on a job site and the drywall contractors forklift knocks a job box off the second floor onto one of your employees head an injures him, your work comp carrier will probably pay your employees medical bills and lost wages and then Subrogate the claim to against the owner of the job box and/or the forklift.

If in this same scenario, you agreed to waive subrogation, your insurance company will then NOT be able to collect any monies from the “at fault” parties and the entire claim will go on your loss history.

In construction, it is very common for your General Liability carrier to be asked to provide this type of waiver.  Although Work Comp carriers are sometimes asked too, they may be unwilling to provide just such a waiver.  Determine if your jobs require this, when purchasing coverage.

If you rarely work commercial jobs or sites with dozens of sub-contractors, it is entirely possible that you may never need to provide this.

If you want to learn more about this endorsement, please click here.

Here is a list of many larger GC’s that work in Florida.  If they require a waiver of subrogation, it should be listed on their prequalification documents under the insurance requirements.