A waiver of subrogation, commonly known as a WOS, is inserted as a contract clause that releases the right of an insurer to sue a third party.
Waivers are intended to minimize lawsuits and to protect companies that hire contractors or subcontractors.
Contractors that work with large companies - mostly in construction - typically get a workers' comp waiver of subrogation that releases the customer of the contractor from liability due to the customer's employees' or a third party conractor's action (or inaction) that leads to an injury of the contractor's employee. So, if someone is injured on the job site, the contractor is liable for the workers' comp injury and cannot go after a third party for compensation.
While a WOS can always be requested by the contracting company, there are often fees associated with adding this clause to the contractor's policy due to the additional risk the carrier takes on.back