In most cases yes, once you confirm your carrier will issue it. A waiver of subrogation stops your insurer from recovering from a named client after paying a claim. It is a standard commercial request, it usually costs little, and it must be added by endorsement to be real. Who this is for: Engineering firms reviewing a client contract or vendor agreement.
The short version
- A waiver gives up your insurer's right to chase a specific party after paying a claim.
- General liability, auto, and workers compensation waivers are routine. Professional liability waivers often are not.
- Agreeing in a contract to a waiver your policy does not provide puts you in breach.
- Keep waivers mutual and tied to the specific engagement where you can negotiate.
- A waiver paired with a broad indemnity clause is where the real risk sits.
What you are actually giving up
Subrogation is your insurer's right to step into your shoes and recover from whoever caused the loss. A waiver of subrogation gives that right away in advance for a specific party. In practice it means: if your client causes a loss that your policy pays, your insurer cannot chase your client for the money.
Clients ask for it so that a claim arising from a project cannot boomerang back at them through your insurer. It is a routine request and it is usually reasonable, but it has to be added to the policy by endorsement to be effective.
Where it applies for engineering firms
| Policy | Waiver commonly requested? | Typical carrier response |
|---|---|---|
| General liability | Yes | Routine, often blanket, little or no cost |
| Workers compensation | Yes | Available by endorsement, often a small percentage charge |
| Commercial auto | Sometimes | Available by endorsement |
| Professional liability | Sometimes | Varies widely, many carriers decline |
| Cyber liability | Occasionally | Usually declined |
The workers compensation waiver matters more than engineers expect. Contracts that require one are common in prime design agreements, and the endorsement usually has to be issued before the work starts, not after a claim.
Should you sign it?
Usually yes, with three conditions:
- Confirm your insurer will actually issue the endorsement. Agreeing in a contract to something your policy does not provide puts you in breach.
- Keep it mutual where you can. If you are waiving subrogation in favor of your client, ask that they waive in favor of you.
- Watch the scope. A waiver limited to the specific project or engagement is normal. A blanket waiver in favor of the client and all of its affiliates, officers, and assigns for all claims is broader than it needs to be.
Where it starts to hurt is when a waiver is paired with a broad indemnity clause. Together they can move the entire financial consequence of a mixed fault loss onto you. That is a contract negotiation, not an insurance fix. See the Morrow glossary entry on waiver of subrogation for the mechanics.
Getting it issued
- Send the clause and the party's exact legal name to your broker before signing.
- Ask whether your policy carries blanket waiver wording, which covers anyone you have agreed in writing to waive against.
- Get the endorsement effective on or before the work start date.
- Note the waiver on the certificate, and keep the endorsement copy with the contract file.
What this looks like in practice
Illustrative example. Numbers are typical of claims we see and are not a promise of how any specific claim would be handled.
The setup: A engineering firm signed a client agreement with a waiver of subrogation on all policies, then had a claim on the engagement.
The claim: The matter started with a survey that placed a property line three feet inside a neighboring parcel. An occupied structure had to be modified and the neighbor sued for encroachment.
The cost: $55,000 in defense costs and $175,000 in settlement, $230,000 in total, paid inside the policy limit after the retention.
The lesson: The general liability and workers compensation waivers had been endorsed before work started, so nothing was contested. Had the endorsements been missing, the firm would have owed the client whatever its insurer tried to recover.
Frequently asked questions
Q: What is a waiver of subrogation in plain English?
It is a promise that your insurer will not go after a specific party to recover money it paid on a claim, even if that party caused the loss. Clients ask for it so a claim from your work cannot come back at them.
Q: Should a engineering firm agree to one?
Usually yes. It is standard in commercial contracts and most carriers will issue the endorsement. Confirm your policy can actually provide it and try to keep the waiver mutual and limited to the engagement.
Q: Does a waiver of subrogation cost money?
On general liability it is usually free or nominal. On workers compensation many carriers charge a small percentage of the premium for the affected policy or issue it blanket at no cost.
Q: Can I waive subrogation on my professional liability policy?
Sometimes. Carrier practice varies widely and many decline. If a contract requires it, ask your broker to confirm in writing before you sign.
Q: What happens if I sign but never get the endorsement?
You have promised something your policy does not deliver. If your insurer later pursues the client, you are in breach of contract and exposed for the amount recovered.
Q: Is a waiver of subrogation the same as a hold harmless clause?
No. A waiver limits your insurer's recovery rights. A hold harmless or indemnity clause is a promise by you to cover the other party's losses, and it is usually the more dangerous of the two.
How Morrow helps engineering firms
Morrow is a licensed independent commercial insurance brokerage that specializes in engineering firms. Confirming waivers before you sign and getting them endorsed is exactly the kind of question we answer every week, and because we place this coverage every day we know which carriers write it well, which forms are broad, and which contract language actually needs an endorsement behind it.
- We read the contract clause and tell you what your current policy already does and does not do.
- We market your account to carriers that have real appetite for engineering firms rather than whoever answers first.
- We issue certificates the same day a client asks, with the endorsements listed correctly.
- We stay on the file at renewal so limits, retroactive dates, and contract requirements do not quietly drift.
Get in touch and we will see how we can help. Tell us what you do, send over any contract that is driving the requirement, and send us the question and we will tell you where you stand. Start at morrowinsure.com or reach the team through the contact options on that page.
One more thing. This article is general information for engineering firms and is not legal advice, tax advice, or a statement of coverage. Policy wording controls in every case, and forms vary by carrier and by state. Have a licensed advisor review your own policy and your own contract before you rely on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated August 2026.