Waiver of Subrogation Gaps

A Waiver of Subrogation is a provision by which the insurance company surrenders its right to sue third parties for compensation on behalf of the insured. Landlords never want to be sued by their tenant or vendors’ insurance company, so many require tenants and vendors to evidence a Waiver of Subrogation.

Waiver of Subrogation Provision Gaps

Understanding the gap:

If the gap says	The issue is
Missing Waiver of Subrogation	Waiver of Subrogation wording isn’t provided, or the wording provided is not acceptable
Missing Waiver of Subrogation provision for Policy	The wording is on the documents, but it doesn’t extend to the required policy
Waiver of Subrogation for Policy must be in favor of Additional Insured Entity or Waiver of Subrogation for Policy must be in favor of all parties as required by written contract	Waiver of Subrogation wording is provided, but not extended to all required Additional Insured entities
Missing Additional Insured Entity as an Additional Insured with explicit Waiver of Subrogation coverage for Policy or All missing Additional Insureds must include explicit Primary and Non-Contributory coverage	Waiver of Subrogation wording is provided and restricted to the entities listed as Additional Insureds, but one or more Additional Insured entities are not provided on the COI
The statement “Limiting Verbiage” in the Description of Operations restricts the Waiver of Subrogation coverage for Policy and must be removed.	Waiver of Subrogation wording is present, but is restricted by unacceptable wording that must be removed
Endorsement for Waiver of Subrogation coverage on Policy cannot be accepted due to “reason”.	The Waiver of Subrogation wording is provided by an endorsement that contains an issue (such as an invalidating watermark or incorrectly filled schedule)

The Before Resubmitting checklist at the end of this section summarizes what should be confirmed on the corrected document.

Missing Waiver of Subrogation Provision

A “missing” gap is flagged when no Waiver of Subrogation wording appears on the submitted insurance documents — not in the Description of Operations, not on an Additional Remarks page, and not on an endorsement.

Waiver of Subrogation coverage must be evidenced on the same document as the applicable policy. When policies are issued on separate certificates, wording on one certificate does not carry over to another.

How to fix this gap? The broker must reissue the document with wording confirming that the required policies have Waiver of Subrogation coverage.

Where to Add the Missing Coverage

Waiver of Subrogation wording is usually included in the Description of Operations box of the COI, as in the example below:

If there is not enough space in the Description of Operations box, the wording can be added to the Additional Remarks page (ACORD 101):

Another method is filling the boxes on the ACORD 25, as in the image below. If the SUBR WVD box is filled with a “Y” or “X”, this indicates that Waiver of Subrogation is provided:

The provision can also be evidenced on a separate endorsement page, corresponding to the applicable policy:

Missing Waiver of Subrogation for Specific Policies

Waiver of Subrogation is commonly associated with General Liability, Automobile Liability, Umbrella Liability, and Workers’ Compensation, but requirements can also mention it for Professional or Pollution Liability.

When the provision is required under multiple policies, each applicable policy must evidence it. When policies are provided on separate documents, the wording must appear on the same document as the applicable policy.

How to fix this gap? The broker must reissue the documentation showing Waiver of Subrogation status for every policy listed in the requirement

Required Additional Insured Entities Missing the Coverage

The Waiver of Subrogation provision must apply to all the required Additional Insured entities. If the COI wording is provided but a gap is flagged referencing the Additional Insured coverage, the coverage may be missing for one or more required Additional Insured entities.

Waiver of Subrogation not extended to all required Additional Insured entities

If the Waiver of Subrogation provision is listed but does not apply to one or more required Additional Insured entities, a gap will be flagged indicating the issue.

How to fix this gap? The broker must reissue the document with wording confirming that the waiver of subrogation provision applies to all the required Additional Insured entities for the applicable policy and policy period.

Waiver of Subrogation wording restricted to the entities listed as Additional Insureds

Sometimes, the Waiver of Subrogation provision is restricted to specific entities listed as Additional Insureds in a Certificate of Insurance, but one or more of the required entities are missing from the document.

How to fix this gap? The broker must reissue the document and add the missing entities with explicit Additional Insured status and including waiver of subrogation coverage for them, for the applicable policy and policy period.

Unacceptable Restriction on the Coverage

A “statement must be removed” gap is flagged when wording provided for the Waiver of Subrogation coverage includes a specific limitation that is not acceptable and must be removed from the Certificate of Insurance.

Usually, the restrictions are related to an endorsement attached or an endorsement code. These restrictions are not acceptable if:

The endorsement code references the wrong policy
The endorsement code does not cover the applicable provision
The endorsement is attached but is not compliant
- When the provision is restricted by an attached endorsement, the form must be valid, list the correct policy number and policy date, have no unacceptable watermarks (such as quote or sample), and have the applicable boxes filled in correctly (including the required Additional Insured entities and the correct project/property location)

How to fix this gap? The broker must reissue the COI with wording confirming that the applicable policies have waiver of subrogation coverage, removing the unacceptable restriction from the verbiage.

Coverage Only Mentioned by an Unacceptable Endorsement

When a separate endorsement is provided for Waiver of Subrogation, but the form contains an issue, the coverage isn’t acceptable, and a “missing” gap is flagged for the required provision. The gap indicates that the required provision is evidenced solely by an endorsement that has issues and therefore can’t be accepted.

The endorsement is not acceptable if:

A wrong policy number is listed on the form, which doesn’t match the COI
It contains an invalidating watermark, such as “quote” or “sample”
An expired policy period is listed on the form, while valid coverage exists
It contains a schedule box, which is empty or filled with wrong information

How to fix this gap? There are different ways to solve this issue, considering that the provision is required:

The provision can be included on the Certificate of Insurance for the applicable policy and policy period
The provision can be satisfied by another valid document, such as a different endorsement
The issue identified with the endorsement can be fixed, and the revised endorsement can be reissued and uploaded

Before Resubmitting

Small details are a common cause of repeat gaps — a provision written for only one policy, or an endorsement that names the wrong party. The list below summarizes what should be confirmed before the corrected documents are submitted.

The wording appears on the same document as the applicable policy
The wording does not include unacceptable limitations — if an endorsement is mentioned, it must cover the applicable provision and, if attached, must be compliant
The provision covers every policy listed in the requirement (General Liability, Automobile Liability and Umbrella, as applicable)
The wording applies to all the required Additional Insured entities
When the provision is evidenced through an attached endorsement, the endorsement must reference the applicable policy number, match the applicable policy period, not contain an invalidating watermark and where the endorsement includes a Schedule, all the required fields are completed correctly

Waiver of Subrogation Endorsement Gaps

Understanding the gap:

If the gap says	The issue is
Missing a copy of the Waiver of Subrogation Endorsement	Separate Waiver of Subrogation endorsement form isn’t attached — Wording on the COI alone isn’t enough for this requirement
Name of Persons or Organizations box on the Waiver of Subrogation endorsement must include “Entity Name” or Name of Persons or Organizations box on the Waiver of Subrogation endorsement must list all Additional Insured entities	A scheduled endorsement is on file, but not all required Additional Insured entities are named in its schedule
Policy number on the Waiver of Subrogation endorsement does not match the “Policy” policy number	An endorsement is provided, but it does not reference the policy number shown on the Certificate of Insurance
Waiver of Subrogation endorsement for Policy cannot be accepted because the expiry date has passed or Waiver of Subrogation endorsement for Policy cannot be accepted due to an invalid effective date	The dates listed on the provided endorsement do not cover the current coverage period
Waiver of Subrogation endorsement for Policy cannot be accepted due to an invalidating watermark	The provided endorsement is marked as a specimen, sample, draft, or void copy

The Before Resubmitting checklist at the end of this section summarizes what should be confirmed on the corrected document.

Missing Waiver of Subrogation Endorsement

Some requirements call for more than wording on the certificate. Wording confirming the provision on the certificate isn’t enough here — the carrier-issued endorsement itself must be submitted. A COI only summarizes the policy; the endorsement is the page that amends it in a legally binding way.

A “missing endorsement” gap is flagged when the requirement calls for the endorsement and the coverage is either missing or only added to the certificate. For this requirement, the endorsement form must be provided, even if the COI includes Waiver of Subrogation wording.

How to fix this gap? The broker must obtain the Primary and Non-Contributory endorsement from the carrier and submit it together with the certificate.

Here’s an example:

Entity Missing from the Endorsement Schedule

Endorsements that include Schedule boxes must be filled in correctly with the applicable information to be acceptable. If the Waiver of Subrogation endorsement is attached but a gap for the Name of Persons or Organizations box is flagged, the required Additional Insured entity is either missing or listed incorrectly in the Schedule.

A scheduled endorsement only extends the provision to the parties named in it, so this needs to be corrected, as the Waiver of Subrogation coverage must apply to all the required Additional Insured entities.

How to fix this gap? The broker must have the carrier reissue the endorsement listing the required entities in the schedule box.

Wrong Policy Number on the Endorsement

An endorsement only amends the policy it is attached to. When the policy number on the endorsement does not match the policy number shown on the Certificate of Insurance, there is no evidence that the coverage applies to the policy in place for the contract term and the endorsement may belong to a prior term or to an entirely different policy.

How to fix this gap? The broker must have the carrier reissue the endorsement under the correct policy number, matching the policy shown on the Certificate of Insurance.

Invalid Policy Period on the Endorsement

An endorsement grants coverage only for the period it is in force. When the endorsement’s effective date falls after the policy inception, or its expiration date falls before the policy expiration, the Waiver of Subrogation coverage does not span the full policy term shown on the Certificate of Insurance, leaving the required entities uncovered for part of the contract period.

This gap is most often seen when an endorsement was issued mid-term for a prior contract and then resubmitted, or when a renewal policy is evidenced with the expiring term’s endorsement.

How to fix this gap? The broker must have the carrier reissue the endorsement under effective and expiration dates that match the policy period shown on the Certificate of Insurance.

Invalidating Watermark on the Endorsement

Endorsements are sometimes submitted as blank forms or unissued copies, marked with wording such as Specimen, Sample, Draft, For Illustration Only, or Void. These markings indicate that the document has not been issued against the policy, so it cannot be relied on as proof of coverage no matter how complete the rest of the form appears.

How to fix this gap? The broker must have the carrier reissue the endorsement free of any wording indicating that it is a specimen, sample, draft, or otherwise unissued document.

Before Resubmitting

If an endorsement is specifically required, it is attached — wording on the certificate alone is not sufficient
The endorsement references the applicable policy and states the coverage is both primary and non-contributory — one term alone is not enough
The endorsement carries no SAMPLE, SPECIMEN, DRAFT, or VOID watermark
Any policy number, effective date, and expiration date printed on the endorsement match the information shown for the applicable policy on the certificate
Where the endorsement includes a Schedule, all the applicable information is listed and spelled exactly as required. When applicable, the Schedule extends coverage to the required Additional Insured entities and locations
The endorsement and certificate both fall within the current policy period