Additional Insured and Waiver of Subrogation
Leases and contracts often require you to add the other party as an additional insured and waive subrogation. The contract promise is only as good as the endorsement.
Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team
General information, not insurance or legal advice.
Overview
Additional-insured status extends your policy to cover another party (a landlord, lender, or customer) for liability arising from your work or your use of premises. A waiver of subrogation gives up your insurer’s right to recover from that party after paying a claim.
Contracts and leases routinely require both. The risk is promising coverage your policy does not actually provide, or providing a narrower endorsement than the contract demands.
Topics to check
An additional-insured endorsement names another party as an insured under your policy for covered claims tied to your operations. The scope depends on the endorsement form — whether it covers ongoing and completed operations, and whether it is primary and non-contributory.
A contract that requires "additional insured on a primary and non-contributory basis for ongoing and completed operations" needs an endorsement that actually says that.
Insured (Cornell LII Wex)Subrogation is the insurer’s right to step into your shoes and recover from a third party after paying your claim. A waiver of subrogation gives up that right against a named party, which contracts often require so neither side’s insurer sues the other.
A waiver must usually be added by endorsement and may need to be in place before the loss; confirm the endorsement matches the contract requirement.
Subrogation (Cornell LII Wex)Compare the contract’s insurance requirements to your actual endorsements: the additional-insured form and scope, primary-and-non-contributory wording, and the waiver of subrogation. A certificate of insurance alone does not amend the policy — the endorsement does.
Whether your endorsements satisfy a specific contract is a coverage question; confirm it with a licensed agent or broker.
Key takeaways
- Additional-insured status extends your policy to another party for your operations.
- A waiver of subrogation gives up your insurer’s recovery right against a named party.
- Scope depends on the endorsement form, not the certificate of insurance.
- Match the endorsement to the exact contract or lease requirement.
- A certificate of insurance does not amend the policy; the endorsement does.
Official resources
Coverage-review notes
Guide confidence marker: Confirm with a licensed agent or broker.
- Whether your endorsements satisfy a contract or lease requirement is a coverage and contract question.
- Confirm additional-insured and waiver-of-subrogation endorsements with a licensed agent or broker (and counsel for the contract terms).
- This guide is general information from the BizLeaseCheck Editorial Team. It is not insurance advice or a coverage opinion; confirm coverage with a licensed agent or broker.
Frequently asked questions
Is a certificate of insurance enough to prove additional-insured coverage?
No. A certificate is informational and does not amend the policy. Additional-insured status and a waiver of subrogation are created by endorsements; confirm the actual endorsement forms, not just the certificate.
Why do leases require a waiver of subrogation?
So that after a loss, your insurer cannot turn around and sue the landlord (or the other contracting party) to recover what it paid. The waiver allocates risk to insurance rather than between the parties.
Is this insurance or legal advice?
No. This is general, educational information to help you read your own policy — it is not insurance advice, a coverage opinion, or legal advice. Coverage depends on the exact policy form, endorsements, declarations, and state law, so confirm what a policy covers (and whether the limits are adequate) with a licensed insurance agent or broker, and read the actual policy.