• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to secondary navigation
  • Skip to footer

Before Header

Call us today for help!  (818) 707-1488

  • Instagram
  • LinkedIn

Friedman + Bartoumian

  • Home
  • About Us
    • Workers’ Compensation Claims Defense
    • Business Litigation
    • Insurance Law
    • Employment and Labor Law
    • General Liability Defense
  • Attorneys
    • Heywood G. Friedman, Founder and Managing Partner
    • Haik K. Bartoumian, Senior Partner
    • All Attorneys
  • Testimonials
  • Legal Art
  • Serving the Community
  • Careers
  • Blog
  • Contact Us
  • Search

Mobile Menu

  • Home
  • About Us
    • Workers’ Compensation Claims Defense
    • Business Litigation
    • Insurance Law
    • Employment and Labor Law
    • General Liability Defense
  • Attorneys
    • Heywood G. Friedman, Founder and Managing Partner
    • Haik K. Bartoumian, Senior Partner
    • All Attorneys
  • Testimonials
  • Legal Art
  • Serving the Community
  • Careers
  • Blog
  • Contact Us
  • Search

Contact Us Today!

If you see lawyers who are ready and able to collaborate with you to find positive solutions to your legal concerns, you should contact us.

(818) 707-1480

Subrogation Waivers: A Sixty-Second Seminar in Workers’ Compensation Claims Handling

November 9, 2022 //  by Law Firm of Friedman + Bartoumian//  Leave a Comment

Most employers are aware of the concept of subrogation. California Labor Code §3852 specifically allows employers to seek recovery against third parties for reimbursement of workers’ compensation benefits paid due to an industrial injury attributed to third party negligence. Specifically, LC §3852 states:

“Any employer who pays, or becomes obligated to pay compensation, or who pays, or becomes obligated to pay salary in lieu of compensation … may likewise make a claim or bring an action against the third person…”

A claims office is empowered to pursue subrogation on behalf of an employer. Unfortunately, many claims professionals do not realize that an employer may waive subrogation against a responsible third party via a special endorsement to their workers’ compensation insurance policy. Fittingly, the endorsement is called a Waiver of Subrogation, which typically, but not exclusively, occurs in the construction industry. For those having an “Easy-To-Read Insurance Policy” this endorsement may be known as a “Waiver of Our Right to Recovery from Others.”

Employers often waive subrogation, especially against clients who provide them with a lot of business. The last thing an employer wants to do is antagonize a great client by pursuing subrogation against them. Thus, the employer purchases a subrogation waiver endorsement. Sadly, many claims administrators are misinformed about the finer points of subrogation waivers. All they are told is they can’t subrogate because an endorsement to the policy says so. That’s where a major misunderstanding often occurs. Claims adjusters do not realize that such an endorsement is not a blanket waiver. It only acts to waive subrogation against “specific persons or organizations” as identified and named in the endorsement.

One example of this misunderstanding occurred in a case where a worker was seriously injured in an industrial vehicle accident that occurred while traveling to deliver building material to a construction site. The claims adjuster noticed that the employer’s policy contained a waiver of subrogation and because of that waiver, the adjuster believed that subrogation against the adverse driver was prohibited. The adjuster could not have been more mistaken. On top of that, the adjuster had also been told by her supervisor that subrogation was not allowed! Let us reiterate: the subrogation endorsement is not a blanket waiver. Fortunately, the error was discovered prior to expiration of the civil statute of limitations.

By publishing today’s blog, we are hoping to spread the word that a subrogation waiver in an insurance policy does not bar all subrogation. Just remember not to subrogate against those individuals or entities identified in the endorsement. Everyone else is fair game!

Category: Legal, Seminar, Sixty-Second Seminar in Workers' Compensation Claims Handling, Workers' CompensationTag: A Sixty-Second Seminar in Workers' Compensation Claims Handling, Sixty-Second Seminar, Sixty-Second Seminar in Workers' Compensation Claims Handling, Subrogation, Subrogation Waivers, Waivers, Work Comp, Workers' Compensation, Workers' Compensation Claims, Workers' Compensation Claims Handling, Workers' Compensation Defense

You May Also Be Interested In:

The Five-Day Rule: A 60-Second Seminar in Workers’ Compensation Claims Handling

Creating Needless Claims: A 60-Second Seminar in Workers’ Compensation Claims Handling

Imputed Knowledge: A 60-Second Seminar in Workers’ Compensation Claims Handling

Claims Forfeiture: A 60-Second Seminar in Workers’ Compensation Claims Handling

The Self-Insurance Exam: A 60-Second Seminar in Workers’ Compensation Claims Handling

EAMS Case Search: A 60-Second Seminar in Workers’ Compensation Claims Handling

Requesting an Additional QME: A 60-Second Seminar in Workers’ Compensation Claims Handling

Occupational Adjustment: A 60-Second Seminar in Workers’ Compensation Claims Handling

Terrorism Claims: A 60-Second Seminar in Workers’ Compensation Claims Handling

Previous Post: « Beware Your Own Witness: A Sixty-Second Seminar in Workers’ Compensation Claims Handling
Next Post: Calculating the Life Pension: A Sixty-Second Seminar in Workers’ Compensation Claims Handling »

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Footer

Practice Areas

  • Workers’ Compensation Claims Defense
  • Business Litigation
  • Insurance Law
  • Employment and Labor Law
  • General Liability Defense

Our Offices

Los Angeles
Orange County
Bay Area
Sacramento
Fresno
Contact Us Today →

Contact Us

Contact our legal office today. Our attorneys are ready to fight for you. There is no time better than now.
Contact Us Today →

  • Facebook
  • Instagram
  • LinkedIn

Newsletter

Sign up to get free resources, tips, and directory of our firm.

  • Legal Blog
  • About Us
  • Privacy Policy
  • Disclaimer
  • Serving the Community

Site Footer

This website may be used for informational purposes only. The information contained in this Website is provided for informational purposes only and does not constitute legal advice. No one should act or refrain from acting on the basis of any information in this website without seeking the appropriate legal and professional counsel on his or her particular circumstances. The operation of this website and the transmission of information via this website are not intended to and do not create a confidential or attorney-client relationship. Any communications with The Law Firm of Friedman + Bartoumian, via Internet e-mail or through this website contain the security limits inherent to standard e-mail and should not be considered secure or confidential. While The Law Firm of Friedman + Bartoumian, hopes that the information contained in this website are useful as general information or background material, and while the contents of the Website are updated regularly, it cannot offer a warranty that the information is current, accurate, or applicable to any given situation. ALL WARRANTIES, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE DISCLAIMED. By the information within this website, The Law Firm of Friedman + Bartoumian, does not hold itself out as qualified to practice law in any state, territory, or country other than those in which its attorneys are actually qualified. Additionally, The Law Firm of Friedman + Bartoumian, does not wish to represent anyone desiring representation based on viewing this website in a state, territory, or country in which this website does not comply with the applicable laws and ethical rules of that state. Links – This website may contain links to third-party websites. These third-party websites are not under the control of The Law Firm of Friedman + Bartoumian, and The Law Firm of Friedman + Bartoumian, is in no way responsible for the contents of any linked websites or any links contained in such websites. Links to third-party websites are provided for convenience only and do not imply endorsement of the linked website by The Law Firm of Friedman + Bartoumian.

Copyright © 2025 · Website Design By Ali Lapidus · Log in