What is a waiver of subrogation?
Under a waiver of subrogation, the insurer (that's SAIF) gives up the right to seek recovery from a third party who may have caused the injury to your worker. It is not included in a standard workers' comp policy, but may be added by request.
The six types of waivers
SAIF has six waiver of subrogation options available to meet your needs:
Partial Waivers are used when you request that we waive subrogation rights against one third party for one contract or project. The waiver will name the contract or project to show that it (the waiver) is limited to a specific contract or project. (Note: Subrogation is not waived against everyone on that project—only for the third party named in the Partial Waiver.) The Partial Waiver charge is .25 percent of manual premium.
Contract Waivers are used when you request that we waive subrogation rights for a single third party for multiple contracts. A Contract Waiver may be used in combination with Partial Waivers if needed. The Contract Waiver charge is one percent of manual premium.
All Written Contracts Waivers are used when you request we waive subrogation rights for multiple contracts that each require the waiver. The contracts may be with many different business partners at different locations. The All Written Contracts Waiver charge is one percent of manual premium.
The distinguishing feature for written contract waivers is that the contract itself requires a waiver. If you enter into some contracts that do not require a waiver, then we do not waive our rights in those situations.
All Written Construction Agreements Waivers are used when you request that we waive subrogation rights for work performed under all your construction agreements. The All Written Construction Agreements Waiver charge is one percent of manual premium.
Construction agreements are defined under Oregon Revised Statute 30.140 and include, but are not limited to, the design, construction, repair, or maintenance of any building, highway, road, or other structure.
20-Calendar-Day Notice Waivers are used when we will pursue subrogation in every eligible case except on claims identified by you when you notify us in writing within 20 calendar days of the date of injury. The 20-Calendar-Day Notice Waiver charge is one percent of manual premium.
The maximum waiver charge in any one policy year is one percent of manual premium, regardless of the number of contract, agreement, 20-calendar-day notice, or partial waivers that are applied to the policy.
Full Waivers are used when you request that we waive our subrogation rights to recover against everyone. This includes waiving subrogation rights against other drivers in a motor vehicle accident unrelated to a specific project or specific contract. "Full" means all third party recoveries of any type.
Since a Full Waiver is all-encompassing, you do not need any other type of waiver if you select a Full Waiver endorsement for your policy. The Full Waiver charge is one percent of manual premium.
If you are working on a wrap-up project, contact your agent or SAIF. Waivers for specific wrap-up projects must be filed with the Oregon Department of Consumer and Business Services as part of the wrap-up filing.
Assigned Risk Plan policyholders
If your coverage is provided through the Assigned Risk Plan (ARP), only the Partial Waiver option is available to you. The charge for the ARP partial waiver is five percent of the manual premium developed from work done in connection with the waiver, subject to a minimum of $250 for each full or partial policy period the waiver is in effect.