Employers
Information for Employers
When a claim is accepted, we will help restore the injured worker, through disability benefits and covering medical costs, depending on the specifics of the claim. When that claim is complete, we may seek to hold third parties, who may have been involved in the injury, to recoup those costs. This is called subrogation.
A waiver of subrogation prevents us from trying to recover those costs from third parties. If your company often works with third parties, such as subcontractors, they may require you to provide them a waiver of subrogation. This is common in the construction industry.
We offer two types. Our table below describes the difference between the two and in what situations each might be of service:
If you request the blanket waiver when binding your policy, your policy will include blanket waiver endorsement. You can only request a blanket waiver at policy inception. If you request the blanket waiver endorsement for your policy mid-term, it won’t be added until your next renewal. Specific waivers can be processed at any time.
Typically, you want to choose the waiver that will be the most cost effective for you. Here are the differences:
| Waiver Type | Types of policyholders that typically get these | What it does | How surcharges are calculated |
| Blanket Waiver of Subrogation | 1. Firms that perform a lot of work requiring a waiver of subrogation throughout the
year. 2. Firms that bid on contracts with a small bidding window who cannot wait for a specific waiver to be produced. 3. Firms that want to reduce administrative complexity. |
Replaces the need to name specific third parties for a valid waiver of subrogation and eliminates the need to provide segregated payroll to the premium auditor. | A 2% surcharge is added to the total annual policy premium. At the time of quote, this amount is calculated based on your estimated annual premium, but the final bill will use the total annual policy premium as the basis for this premium surcharge. |
| Specific Waiver of Subrogation | Firms that do not have many clients requiring a waiver of subrogation. | If a policy does not have a blanket waiver of subrogation, each time a policyholder enters into a contract with a third party who requires a waiver, the policyholder must contact us and request the specific waiver of subrogation gets added for this specific third party. | A 3% surcharge is calculated based upon the payroll generated during the work performed for each named third party with a specific waiver of subrogation. |
If you’re working with an underwriter, please contact them to request a waiver. If you don’t have an underwriter assigned to you, please call customer support at (888) 782-8338.
No. We can’t delete a waiver of subrogation endorsement during the policy term.
Some endorsements, such as those for a waiver of subrogation and agreed payroll, will not automatically roll over to the renewing policy year because there are surcharges that require policyholder request and acceptance. Contact us or your broker to request these endorsements.
