Short answer
A waiver of subrogation is an endorsement where your insurer gives up its right to recover a claim payment from the operator (or another party named in your contract). Oilfield MSAs require it on general liability, auto and workers comp so that a claim paid by your insurance stays paid, instead of turning into a lawsuit against the company that hired you.
- It only works if the endorsement is actually on the policy. A checked "SUBR WVD" box on a certificate does not create the waiver.
- In Texas, the workers comp waiver is a TDI-approved form, WC 42 03 04, and it can be written for a named party (specific) or for anyone your written contracts require (blanket).
What subrogation is, in plain terms
When your insurer pays a claim, it normally steps into your shoes and can go after whoever else caused the loss. That right is called subrogation. On a workers comp claim, for example, if your hand gets hurt on location and the operator's equipment or crew played a part, your comp carrier pays the medical and wage benefits and then may try to recover that money from the operator.
A waiver of subrogation is you agreeing, in the MSA, that your insurance will not do that, and then having each insurer endorse the policy to say so. The operator's goal is simple: the risk of injury to your people and damage to your gear sits with you and your insurance, not with them. That is the same allocation a knock-for-knock indemnity clause makes, and the waiver keeps your insurers from undoing it through the back door.
Which policies need it, and the endorsement that does the work
Most MSAs ask for the waiver on three lines, sometimes four. Each line has its own endorsement. One endorsement does not carry over to another policy.
| Policy | What the waiver does | How it is usually added |
|---|---|---|
| General liability | Insurer waives recovery against the scheduled party for payments under the GL coverage part | ISO CG 24 04, "Waiver of Transfer of Rights of Recovery Against Others to Us," or a carrier equivalent |
| Business auto | Insurer waives recovery against the scheduled party for auto liability payments | A waiver endorsement on the auto policy (form numbers vary by carrier) |
| Texas workers comp | Insurer will not enforce its right to recover benefits it paid from the scheduled party | WC 42 03 04, "Texas Waiver of Our Right to Recover From Others Endorsement" |
| Umbrella / excess | Depends on the umbrella wording; some follow the underlying waivers, some need their own | Read the umbrella form; ask for confirmation in writing if the MSA requires it |
MSA clause to endorsement
Specific vs. blanket waivers
A specific waiver names one party. It works, but you need a new endorsement every time you sign another MSA, and it is easy for one to get missed at renewal.
A blanket waiver applies to anyone you agreed in a written contract to give a waiver to. The Texas comp form has both options on its schedule: "Specific Waiver" with a name, or "Blanket Waiver" for "any person or organization for whom the Named Insured has agreed by written contract to furnish this waiver." The current ISO GL form works the same way when its schedule references written contracts executed before the loss.
Two details matter on blanket wording:
- The contract has to be in writing and signed before the loss. A verbal agreement or an MSA signed after the injury will not trigger it.
- It only goes as far as your contract. The GL form waives recovery "only to the extent that the insured has waived its right of recovery" before the loss. If your MSA does not actually contain the waiver, the endorsement has nothing to grab.
For most oilfield contractors working under several MSAs, blanket waivers on every line are the cleaner setup. See what a blanket additional insured endorsement is for the same logic applied to AI status.
Where certificates go wrong
The ACORD 25 certificate has a "SUBR WVD" column, and plenty of contractors assume checking it is enough. The form says otherwise: "If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s)."
That is why ISNetworld, Avetta and operator contract reviewers often ask for the endorsement pages themselves. If yours keep getting kicked back, see why certificates get rejected and the MSA insurance requirements overview.
Common questions
Does a waiver of subrogation make my premium go up?
It can. Carriers often charge for waivers, especially on workers comp, where the Texas form has a premium line tied to payroll for the scheduled work. The amount depends on the carrier and whether the waiver is blanket or specific.
Is a waiver of subrogation the same as additional insured status?
No. Additional insured status lets the operator claim under your policy. A waiver of subrogation stops your insurer from suing the operator after paying your claim. MSAs usually require both, and each needs its own endorsement.
Do I need a waiver on my umbrella too?
If the MSA asks for it, yes. Some umbrella forms follow the underlying waivers and some do not, so the umbrella wording has to be checked rather than assumed.
Can I just check the SUBR WVD box on the certificate?
No. The ACORD 25 itself says a statement on the certificate does not give the holder rights in place of the endorsement. The waiver has to be on the policy.
Sources
- Texas Department of Insurance, Texas Workers Compensation and Employers Liability Manual endorsements (WC 42 03 04 A). Text of the Texas waiver endorsement: specific vs. blanket schedule, written-contract requirement, premium as a percent of payroll-developed premium.
- IRMI glossary: Waiver of subrogation. What a waiver of subrogation does and why it has to be agreed before the loss.
- Wausau Underwriters Ins. Co. v. Wedel, No. 17-0462 (Tex. 2018). Texas Supreme Court: a comp carrier that waived recovery for a higher premium cannot recover indirectly from the worker's settlement.
- ACORD 25 (2016/03) Certificate of Liability Insurance, specimen posted by NY Office of General Services. Certificate language that a SUBR WVD statement does not replace the endorsement.
This page explains insurance, not law. Have your attorney review indemnity and contract language; our job is making the insurance match it.
Keep reading
Contract requirements
The operator sent me an MSA. What insurance does it actually require?
Contract requirements
What does knock-for-knock mean in my MSA, and what insurance does it take?
Questions
What is a blanket additional insured endorsement for oilfield work?
Questions
Do oilfield contractors need workers comp in Texas?
Questions
Why was my certificate of insurance rejected?