# What Is a Waiver of Subrogation? The Insurance Clause NEMT Brokers Require

Canonical URL: https://nemtguide.com/glossary/waiver-of-subrogation/ · Updated 2026-10-03

A waiver of subrogation is a promise, added to your policy by endorsement, that your insurer will not try to recover what it pays on a claim from the party named, such as a broker, health plan, or facility. NEMT contracts ask for it on workers' comp, auto, and general liability, usually beside primary and noncontributory wording. Some insurers charge for it.

- A waiver of subrogation stops your insurer from suing the named broker, plan, or facility to get back what it paid on a claim.
- MTM Health, WellTrans, Texas and Arizona health plans, Hamilton County in Ohio, and Mass General Brigham write it into their contracts.
- A blanket waiver covers anyone your written contract names, but Arizona's health plans accept only named endorsements.
- Oregon's SAIF charges 0.25 to 1 percent of manual premium, and North Dakota's state fund will not waive at all.
- Primary and noncontributory wording, its usual partner, makes your policy pay first. Both count only when the policy says them, not just the certificate.

## What a waiver of subrogation means

Subrogation is an insurer's right to go after whoever caused a loss it paid, to get the money back. Sonoma County's contract insurance guide uses workers' comp to show it: the policy pays your injured employee no matter who was at fault, and if an outside party's negligence caused the injury, the insurer may seek recovery from that party. A waiver of subrogation is your insurer's agreement not to do that to the party named in the waiver.

It is not automatic. SAIF, a workers' comp insurer in Oregon, says a waiver is not included in a standard workers' comp policy and may be added by request. Your agent asks the insurer for a waiver endorsement on each policy the contract names.

### What it does on each policy

- **Workers' compensation.** Your driver hurts their back on a hospital's broken ramp during a pickup. Your comp insurer pays the claim. Without a waiver, it could seek its money from the hospital if the ramp was the hospital's fault. With a waiver naming the hospital, it cannot.
- **Commercial auto and general liability.** A rider sues after a fall during a trip, and your insurer pays. If the broker's scheduling or the facility's curb played a part, your insurer could seek a share from them. A waiver in their favor stops that.

## Which NEMT contracts require one

Brokers, plans, and facilities ask for the waiver so a claim on your policy never comes back to them. These are the written terms as of October 2026:

| Who asks | On which policies | Form it must take |
|---|---|---|
| MTM Health, standard agreement (January 1, 2023 version Pennsylvania posts) | Its required insurance, in favor of MTM and all affiliates | With primary and noncontributory coverage |
| WellTrans, Indiana (revised October 16, 2025) | Any insurer of yours, in favor of WellTrans | Binds you even without an endorsement |
| Texas Medicaid health plans, for ride companies other than rideshare (managed care manual 16.4, version 2.0.1) | Every required policy, in favor of the State of Texas | With primary and noncontributory coverage |
| Arizona health plans (AHCCCS rules revised January 9, 2025; credentialing application effective March 1, 2026) | General liability, auto, and workers' comp, in favor of the State of Arizona | Named endorsement only, no blanket |
| Hamilton County, Ohio, Medicaid transportation RFP (December 2025) | Every policy tied to the work, in favor of the county and its Job and Family Services agency | An endorsement on each policy |
| Mass General Brigham, 2026 supplier terms (expire December 31, 2026) | Every policy that names it as an additional insured | Primary and noncontributory at the hospital's choice |

The WellTrans row deserves a second look. Its agreement says you will get any endorsement needed, but that the waiver applies whether or not WellTrans ever receives one. Get the endorsement anyway, so your policy allows what your contract promises. For the broker names these contracts require on your policies, see [additional insured](https://nemtguide.com/glossary/additional-insured/).

## Blanket or named

A named, or specific, waiver lists one party. A blanket waiver covers anyone you have agreed in a written contract to give a waiver. SAIF's options run from a partial waiver for one party on one contract to an all written contracts waiver that covers every contract requiring one.

Blanket is easier when you work for several brokers, but not every contract takes it. Arizona's health plan credentialing application (effective March 1, 2026) rejects blanket endorsements for both the waiver and the additional insured status. Texas limits what a certificate can say about one: if your policy has only a blanket waiver, the certificate may say the policy contains a blanket waiver, but not that it waives subrogation in the holder's favor (TDI FAQ, last updated October 31, 2022). Ask each broker in writing which form it accepts before you buy.

## What a waiver of subrogation costs

Insurers price it differently, and many charge for it. SAIF publishes its charges as a share of premium, as of October 2026:

- **Partial waiver,** one party on one contract: 0.25 percent of manual premium.
- **Contract waiver,** one party across several contracts: 1 percent.
- **All written contracts waiver,** the blanket form: 1 percent.
- **Full waiver,** giving up recovery against everyone: 1 percent.
- **Yearly cap:** 1 percent of manual premium, however many waivers you add.
- **Assigned risk policies:** partial waivers only, at 5 percent of the premium for that work, with a $250 minimum per policy period.

Read the full waiver closely. SAIF's full waiver also gives up recovery against other drivers in a motor vehicle crash. If another motorist injures your driver, that recovery is how your insurer gets its money back, so ask for the narrowest waiver your contracts allow.

In North Dakota you cannot get one at all. Workforce Safety and Insurance, the only workers' comp insurer there, does not waive subrogation and offers a letter stating that rule instead. See [workers' comp for NEMT](https://nemtguide.com/guides/workers-comp-for-nemt/) for the coverage itself.

## Where it shows on the certificate of insurance

The ACORD 25 certificate, in the 2016/03 edition the Texas Department of Insurance approved on May 14, 2015, has a column marked SUBR WVD beside each policy line, next to the ADDL INSD column. On the workers' comp line, the additional insured column is marked N/A, but the waiver column stays open.

A mark in that column is only a report. The form says that when subrogation is waived, certain policies may require an endorsement, and that the certificate gives the holder no rights in place of one. The Texas Department of Insurance tells agents to check the waiver box only when the policy has a waiver endorsement naming the certificate holder. Send the endorsement with the [certificate of insurance](https://nemtguide.com/glossary/certificate-of-insurance/) when a broker asks.

## Primary and noncontributory: the clause that travels with it

Primary and noncontributory sets the order of payment. Sonoma County's guide explains the two words. Primary means your policy pays before the other party's insurance or self-insurance. Noncontributory means their insurance does not share the loss with yours. If both policies are primary and neither says noncontributory, they become contributing primary insurance and split the defense costs and damages.

NEMT contracts ask for it in plain terms. MTM Health's agreement makes your coverage primary and noncontributory with respect to all other available sources. Verida's Washington, DC provider page wants auto and general liability primary and noncontributory. Arizona's health plan rules make your insurance primary and the state's excess and not contributory, under Arizona Revised Statutes 41-621(E). WellTrans's agreement says your insurance is primary and does not contribute with WellTrans's, though one sentence in the same section calls yours excess, so ask WellTrans in writing which governs.

The wording must be in the policy. Sonoma County's guide says a certificate stating that coverage is primary and noncontributory is not legally binding, and the ACORD 25 has no box for it. The Texas Department of Insurance adds that a certificate cannot say anything that differs from the policy.

### Example: a broker and your company sued together

A rider falls while your driver helps her down from the van, and her lawsuit names your company and the broker that assigned the trip. Here is how the three clauses play out:

1. **Additional insured.** The broker is covered by your liability policy for the claim, so your insurer defends it too.
2. **Primary and noncontributory.** Your policy pays first, and the broker's own insurance stays out until your limit is used up.
3. **Waiver of subrogation.** After paying, your insurer cannot sue the broker to recover any part, even if it believes the broker's scheduling played a part.

All of it comes out of your limits. See [NEMT insurance requirements](https://nemtguide.com/guides/nemt-insurance-requirements/) for the limits each program sets, and [NEMT liability](https://nemtguide.com/guides/nemt-liability/) for the indemnity terms that sit next to these clauses.

## Frequently asked questions

### Does a waiver of subrogation cost extra?

Often. Sonoma County's contract insurance guide notes that many workers' comp insurers charge for it. As of October 2026, Oregon's SAIF charges 0.25 percent of manual premium for a waiver tied to one party and one contract, and 1 percent for broader waivers, with 1 percent the most it charges in a policy year. Its assigned risk policies pay 5 percent of the premium for that work, at least $250.

### Can I get a waiver of subrogation on workers' comp in North Dakota?

No. Workforce Safety and Insurance, the state agency that is the only workers' comp insurer in North Dakota, does not waive its rights of subrogation and does not add additional insureds. It offers a coverage limits and rights of subrogation letter to send with your Certificate of Payment, so ask the broker to accept that instead.

### Is a checked waiver box on my certificate enough?

No. The ACORD 25 certificate says that when subrogation is waived, certain policies may require an endorsement, and that the certificate gives the holder no rights in place of one. The Texas Department of Insurance tells agents to check the box only when the policy has a waiver endorsement naming the certificate holder. Keep a copy of the endorsement with the certificate.

### What is the difference between a waiver of subrogation and primary and noncontributory?

A waiver of subrogation decides whether your insurer can go after the broker after it pays. Primary and noncontributory decides the order of payment before that: your policy pays first, and the broker's own insurance does not share the loss. Contracts from MTM Health, WellTrans, and Mass General Brigham ask for both.

## Official resources

- [County of Sonoma: Workers compensation waiver of subrogation explained](https://sonomacounty.gov/administrative-support-and-fiscal-services/human-resources/divisions-and-units/liability-and-insurance/insurance/help-and-support/contract-insurance-requirements-reference-guide/workers-compensation-and-employers-liability-insurance)
- [Texas Department of Insurance: Certificates of insurance FAQ](https://www.tdi.texas.gov/certificates/faq.html)
- [North Dakota WSI: Coverage limits and rights of subrogation letter](https://www.workforcesafety.com/employers/insurance-coverage-information/coverage-limits-rights-subrogation)
- [NAIC: Find your state insurance department](https://content.naic.org/state-insurance-departments)