Why it matters for your company
Subrogation is how insurers get money back. If your workers' compensation insurer pays for a technician hurt on a customer's floor, it can normally pursue the customer if their negligence caused the injury. A waiver removes that right against the named party.
Customer contracts ask for waivers on general liability, workers' compensation and auto. Your insurer usually charges a small amount for it, and it has to be added by endorsement before the certificate can show it. Signing a contract that promises a waiver your policy does not carry leaves you in breach of that contract.
Related terms
- Additional insuredA person or company added to your policy by endorsement so they can claim under it too, usually a landlord or customer whose contract asks for it. They get a right to defense and payment for claims arising from your work, within the limits of the endorsement.
- Certificate of insuranceA one-page summary issued by your broker that shows which policies you carry, their limits and dates, and who the certificate holder is. It proves coverage exists and changes nothing about it.
- EndorsementA page attached to a policy that changes it: it adds coverage, removes it, names a new party, or rewrites a definition. The endorsement controls over the base form wherever the two disagree.
- Employer's liabilityThe second part of a workers' compensation policy, which covers suits by employees or their families that fall outside the state compensation system. It carries its own limits, often asked for in customer contracts.