Blanket Waiver of Subrogation

The blanket waiver of subrogation endorsement is a single endorsement to a policy that will replace the need to add waivers that specify a third party. It will apply when your client enters into a written contract with any third party who requires your client to provide them with a waiver endorsement. The charge for a blanket waiver endorsement is 2% of the total annual policy premium.

Renewing policies: Answer “Yes” to the question asking if you want the blanket waiver endorsement on the policy on the renewal information form that is provided to you approximately 60 days prior to policy renewal.

New policies: Indicate you want the blanket waiver endorsement in the comments section when you submit the application online.

In both cases, the 2% charge for the blanket waiver will be included in the quote.

If the blanket waiver endorsement is not requested prior to the inception of a new or renewing policy, it will not be added until the next renewal.

My client seldom has a written contract with a third party that has a waiver of subrogation requirement in any one year. Should they still go with a blanket waiver?
A blanket waiver is a good option for policyholders who have multiple written contracts that cover much of their business activity in a year that require a waiver of subrogation. Also, it’s a good option for those policyholders who want the ease associated with one decision at the time the policy is requested and eliminates the need to provide the premium auditor segregated payroll. .

How can I figure out which option best suits my client?
If you’re only looking at the cost of the surcharge, estimate what 2% of the annual premium would be. Then figure out the premium associated with third parties that require a waiver. If it’s less than two thirds of the total, then the specific option may carry less of a surcharge. You also may want to factor in the cost of requesting the specific waivers each time one is needed versus requesting the blanket option upfront.

Can my client change their mind as to which option they want once the policy is issued?
This decision is best made prior to binding coverage whether it is a new policy or a renewal. Once a policy is issued with either a blanket or specific waivers, we cannot convert to the other option until renewal.

Does this mean I don’t have to let you know if there is a waiver required prior to delivering the certificate of insurance to the customer?
Yes, that’s correct as long as there is a blanket waiver on the policy, or unless the certificate holder requires a specific waiver. This should help to streamline your production of ACORD25 certificates.

When can I note on the ACORD 25 certificate that the blanket waiver exists on a policy?
Once the blanket waiver is endorsed onto the policy and appears in the endorsement list in State Fund Online it can be noted on the ACORD 25. Also, if you need to attach a copy of the blanket waiver endorsement to a certificate, a copy will be available in the “Documents” section of State Fund Online.

Important: you should add the blanket waiver endorsement and/or attach a copy of the endorsement to the ACORD25 certificate only when the third party requires a waiver in their written contract with your client.

What if the entity requesting the waiver won’t accept a blanket waiver of subrogation - how will this be handled?
We have retained the ability for underwriters to issue a specific waiver for those rare situations where it may be required by the third party. We won’t make an additional surcharge for the specific waiver in this special situation, as long as the blanket waiver is on the policy and the 2% surcharge has been applied.

Should I request the specific waivers on a policy be deleted when the blanket waiver is added?
Yes, you’ll need to determine if any existing specific waivers should remain on your client’s policy. Then you may request the unneeded specific waiver endorsements be deleted from the policy by contacting your underwriter.

If my client no longer needs a blanket waiver endorsement, can I have it removed from the policy?
Once endorsed on a policy, the blanket waiver endorsement will automatically renew with the policy. You can request the endorsement be removed from their policy prior to policy renewal for the upcoming year. It can only be removed as of the policy renewal date.

If you have any questions, please contact customer support at (888) 782-8388, or your underwriter.