Glossary / Vendor requirements / Waiver of Subrogation

Waiver of Subrogation

Also known as: Subrogation Waiver · WOS

Vendor requirements DICEE: Endorsements

An endorsement where your insurer gives up the right to recover claim costs from a third party.

Subrogation lets your insurer recover money from a responsible third party after paying your claim. A waiver of subrogation means your insurer gives up that right against a specific party named in the waiver—typically the client, landlord, or general contractor you've agreed by contract to protect—so a covered loss doesn't damage that business relationship. That party is often also an additional insured, but the two are separate endorsements.

Common vendor contract language

"Vendor shall provide a waiver of subrogation in favor of Client on all required policies, as required by written contract."

Where you'll see it

Vendor contractCOIPolicy

Why it matters for your business

  • Commonly required in vendor contracts alongside additional insured.
  • Protects your business relationship with the client (or landlord/general contractor) named in the waiver.
  • Usually available at no additional premium on GL policies.

People also ask

What is subrogation in insurance?

Subrogation is your insurer's right to recover money from a third party who caused a loss after paying your claim. For example, if a vendor's negligence caused damage and your insurer paid the claim, your insurer could sue the vendor to recover costs. A waiver of subrogation gives up this right.

Does a waiver of subrogation increase my premium?

Usually not. Many GL policies include blanket waiver of subrogation at no additional cost when required by written contract, though this varies by carrier and policy form. Some specialty policies may charge a small additional premium.

Ready to take the next step?

Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994

Last updated: July 2026.