Sometimes. A waiver of subrogation (your insurance company agreeing not to go after your customer to recover money it paid on a claim) is often free on general liability but usually costs a little on workers comp. Think roughly $0 to $250 per customer on general liability, and about 2% to 5% of the premium for the payroll on that job on workers comp, or a flat minimum (all illustrative). Who this is for: owners pricing a bid, or deciding whether to push back on a customer's waiver request.
The short version
- General liability waivers are often free, especially when your policy already has blanket wording.
- Workers comp waivers are usually priced at 2% to 5% of the premium for the payroll on that job, or a flat minimum.
- A blanket waiver that covers every customer often costs less than paying per customer if you sign more than a few contracts a year.
- Build the cost into your bid. It is a real job cost, like a permit.
- All prices here are illustrative. Your trade, payroll, state, and insurance company set the real number.
What does the waiver cost on each policy?
These ranges are illustrative, for a small contractor with a clean claims history. Your trade, payroll, state, and insurance company set the real price, so ask your broker before you bid.
| Policy | Typical charge (illustrative) | Why |
|---|---|---|
| General liability, blanket | Often included at no charge. Some insurance companies charge $50 to $250 a year for the blanket endorsement (form CG 24 04, the general liability waiver). | Your policy pays when your work caused the harm, so there is usually less to recover from anyone else. |
| General liability, one customer | $0 to $250 per customer | Same page, with one name typed in. Some insurance companies charge a small fee each time. |
| Workers comp, one customer | 2% to 5% of the premium for the payroll on that job, often with a minimum of $100 to $250 | Injury claims are where insurance companies recover money. The waiver (form WC 00 03 13, or Texas form WC 42 03 04) gives that up. |
| Workers comp, blanket | 2% to 5% of your whole workers comp premium, or a flat annual charge | Covers every customer you sign a written contract with. |
| Commercial auto | Usually free or a small flat charge | Rarely requested, rarely priced. |
Why does workers comp cost more than general liability?
On a general liability claim, your insurance company pays only when your work caused the harm. So there is less often anyone else to recover from, and when there is, the amount is usually small. Giving up that right costs it little. Workers comp is different. It pays your injured employee no matter who was at fault, then normally recovers from whoever caused it, often the general contractor (GC) or another trade. Giving that up on a construction site is a real cost, so it is priced.
How is the workers comp charge figured?
Most insurance companies work out the premium on the payroll for that job and charge a percentage of it. Here is an illustrative example.
- Payroll on the job: $60,000
- Your workers comp rate: $8 per $100 of payroll
- Premium for that payroll: $4,800
- Waiver charge at 3%: $144
- Minimum charge on your policy: $150, so you pay $150
If you cannot split out the payroll for one job, the insurance company may charge the percentage on your whole premium instead. Some states set the percentage or the minimum by rule, and a few do not allow workers comp waivers at all, so ask your broker before you promise one.
Is a blanket waiver cheaper than one at a time?
Usually yes, once you pass a handful of contracts a year. Say a scheduled waiver (one that names a single customer) costs $150 each time (illustrative). Four jobs is $600. A blanket waiver at 3% of a $12,000 workers comp premium is $360 and covers every job. The math flips the other way if you sign one or two contracts a year. See a waiver for just one job for the full comparison.
Can I pass the cost on to my customer?
Not directly, but you can price it in. The waiver is a cost of doing that job, the same as a permit or a dumpster. If a customer asks for waivers on several policies, ask your broker for the total before you sign, then add it to your bid.
You can also ask the customer to narrow the request. Many will drop the waiver on auto or umbrella. Few will drop it on general liability or workers comp.
Are there other costs I should think about?
- Time. An endorsement takes one to three business days, and a late start can cost far more than the waiver.
- Your renewal. The waiver itself does not raise next year's price in most cases. Claims do that, not endorsements.
See waiver of subrogation for the plain English, and what to do when your GC asks for one for the steps.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: A painting contractor in New Jersey does about twelve jobs a year, each with a different general contractor (GC). Every GC asks for a waiver on workers comp. Her broker adds a waiver naming each one.
What went wrong: Each waiver carries the insurance company's $150 minimum charge (illustrative), and each certificate waits two days for a new endorsement. Nobody adds it up.
What it cost: $1,800 a year in waiver charges (illustrative), plus about two dozen days of certificate delays spread over twelve jobs.
The fix: Count your contracts. At renewal her broker switched her to a blanket waiver at 3% of her $14,000 premium, about $420 a year (illustrative), and her certificates now go out the same day. Past three or four contracts a year, blanket usually wins on price and speed.
Frequently asked questions
Q: Does adding a waiver of subrogation cost extra?
Sometimes. On general liability it is often free, or up to about $250 for one customer. On workers comp most insurance companies charge 2% to 5% of the premium for the payroll on that job, or a flat minimum. These figures are illustrative.
Q: Why does my broker say the general liability waiver is free but the workers comp one is not?
Because the insurance company gives up more on workers comp. It pays injury claims no matter who was at fault, then normally recovers from whoever caused it. The waiver takes that away, so it is priced.
Q: Is it cheaper to get a blanket waiver?
Usually, once you sign more than three or four contracts a year. A blanket waiver is one charge for every customer. One customer waivers charge per customer and each one takes a day or two to issue.
Q: Can I bill the customer for the waiver?
Not as a line item, usually. Build it into your bid instead, the same way you price a permit. Ask your broker for the total cost of everything the contract asks for before you submit your number.
Q: Is there a state where I cannot buy a workers comp waiver?
In North Dakota, Ohio, Washington, and Wyoming you buy workers comp from the state fund (the state's own workers comp insurer), and the fund does not issue waivers. Kentucky does not allow them. Texas allows the waiver but uses its own form. If your job is in one of those states, ask your broker before you sign.
Q: Do I pay the charge once, or every year?
Blanket wording is normally charged every policy year. A waiver naming one customer is usually a one time charge for that job. Ask your broker which way your insurance company bills it.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Pricing every endorsement a contract asks for before the owner signs, so the cost lands in the bid and not in the margin, is a core part of our contract review.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.