What Is a Workers' Comp Waiver of Subrogation?

by Laurie Reeves Google

Workers' compensation requirements for employers are managed at the state level. Each state, except for Texas, has specific laws that require medical coverage, partial salary replacement or both for injuries experienced on the job. When the company you work for maintains workers' compensation insurance, you lose the right to sue your employer for the injury because of a workers' compensation "waiver of subrogation."

Workers' Compensation

Workers' compensation is a type of insurance that employers maintain to provide benefits for their employees because of an on-the-job injury. Employers can typically elect to obtain insurance, be self-insured and self-administered or hire a third-party administrator to manage their workers' compensation claims, depending on the state in which they do business. Workers' compensation coverage ensures you receive medical treatment for your injury. If you qualify, you might also be eligible to receive partial salary placement if you lose time from work.


Subrogation is a legal term often found in contracts or used by insurance companies when they seek reimbursement for damages. "Subro" is a Latin-based word that suggests the substitution of one person for another. For instance, if you experience a loss covered by insurance and your insurance company pays you, the insurance company, if they have the right of subrogation, can sue that person or entity to collect for the payments they made to you under your policy.

Waiver of Subrogation Clause

A waiver of subrogation is a clause included in a legal contract under the insurance section that limits an insurance company's ability to make a claim against an "at-fault" party on behalf of its insured. Basically, it means that whomever agrees to the clause in a contract is waiving or "releasing" its right to sue a third party, such as an insurance company, for damages in the event of a loss.

Workers' Compensation Subrogation Waiver

Before workers' compensation laws were implemented, employees had to sue their employers if they were injured on the job. This typically made it difficult for employees to receive compensation for on-the-job injuries. When workers' compensation laws went into effect, employers were required to pay for the medical injuries and provide partial salary replacement for those who lost time from work. If you have workers' compensation coverage, it automatically involves a workers' compensation waiver of subrogation, which means you give up your right to sue your employer or its insurance company because you are already being compensated for your injury under workers' comp.

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