Understanding the CG 2404 Endorsement

The CG 2404 is the ISO endorsement titled Waiver of Transfer of Rights of Recovery Against Others to Us. Added to a commercial general liability (CGL) policy, it stops the insurer from pursuing recovery against a scheduled person or organization after paying a claim. The named insured agrees to that waiver of subrogation in a contract, and the endorsement makes the insurer honor it. Agents see the request most often from a general contractor, landlord, or large customer, usually on the same certificate request that asks for additional insured status.

Getting the CG 2404 right matters because a contract breach can follow a missing endorsement. If the insured promised a waiver and the CGL policy does not include one, the insurance carrier keeps its subrogation rights. The insurer can then sue the very customer the insured promised to protect, straining business relationships and creating legal complications the insured never expected. Total CSR's sample waiver of subrogation form (PDF) shows what the endorsement looks like on a policy.

If you would like a sample of the CG 2404, it can be located on the bottom of this article where you can view and save it.

What the CG 24 04 Endorsement Changes in a CGL Policy

Subrogation lets an insurer that paid a loss step into the insured's shoes and pursue the party that caused it. In the CGL form, Section IV, Conditions, the transfer of rights of recovery condition states that the insured's rights to recover a payment pass to the insurer, and the insured must do nothing after a loss to impair them. Because that policy condition speaks only to conduct after a loss, some read it as allowing waivers made before loss. Contract partners still want written proof, so they ask for the endorsement rather than relying on that reading. The endorsement also gives the underwriter a chance to price the waiver and to see exactly who is protected.

Base condition compared with the endorsement:

Question	Base CGL policy	With the CG 2404
Who holds the right of recovery after a paid claim?	The insurer, by transfer	The insurer, except against scheduled parties
Can the insured waive rights before a loss?	Not addressed directly	Yes, for the scheduled party
Where is the protected party named?	Nowhere	The endorsement schedule or declarations
Which losses are waived?	None	Losses tied to the contracted operations or work
Is there an extra premium?	No	Often, depending on the carrier
Does the insured's coverage change?	No	No, only recovery rights change

Edition details to confirm on the policy:

• Older forms such as CG 24 04 10 93 still appear on renewals.
• The CG 24 04 05 09 edition is widely used.
• Read the edition printed on the form, not the certificate.
• Carriers may use their own forms for the coverage part with different wording.

The 05 09 wording ties the waiver to payments for injury or damage arising out of the insured's ongoing operations, or work done under a contract with the scheduled party that falls in the products-completed operations hazard. That link to a contract is the point of the form. It is a waiver of rights of recovery for a defined relationship, not a general release, so the agent's job is to match the schedule to what the written contract actually requires.

How a CG2404 Waiver Plays Out: A Hypothetical Product Loss

This example is hypothetical and simplified. An electric motor manufacturer sells motors for table saws to a saw maker under a purchase order.

1. Purchase orderThe order requires the electric motor manufacturer to waive subrogation against the saw maker.
2. EndorsementThe motor maker's CGL policy carries a CG 2404 scheduling the saw maker.
3. LossA user is hurt, and the suit alleges both a defective motor and a poor blade guard design.

The motor maker's insurer pays defense costs and a settlement, then assesses whether the saw maker was a responsible party whose negligence contributed.

What happens in each version:

Step	Without the waiver	With the waiver
Insurer pays the covered occurrence.	Yes	Yes
Insurer studies the saw maker's share.	Yes	Yes, for its own records only
Insurer files a subrogation claim.	Possible	Barred against the saw maker
Litigation between the two businesses	Likely if fault is shared	Avoided on this loss
Saw maker stays a satisfied customer.	Uncertain	More likely

Questions the agent should ask in this scenario:

• Does the edition's wording reach a product loss like this one?
• Did the sales contract require the waiver before the loss?
• Is the saw maker scheduled by name or by blanket wording?
• Would the saw maker's own CGL policy answer for its share?
• Does the waiver also affect the insured's deductible or self-insured retention?

That last question deserves attention. The contract waiver can bar the insured from recovering its own retained amount from the other party, and the CG 2404 does nothing to restore it.

Contracts That Call for a CG 2404

Common sources of the request:

Contract type	Who usually asks	What to check
Construction contracts	General contractor or project owners	Ongoing and completed work wording
Subcontract agreements	The general contractor above the insured	Flow-down from the owner contract
Lease agreements	Landlord or property owner	Mutual waiver and property policy wording
Service agreements	Facility or retail customers	Additional insured and certificate terms
Purchase orders	Manufacturing and distribution buyers	Products-completed operations language
Equipment rental agreements	Rental companies	Which party waives and on which policy
Real estate management	Owners and management companies	Who is named and for which locations

In the construction industry, a waiver usually travels with additional insured status and primary and noncontributory wording. The general contractor wants its own policy left untouched when a subcontractor's work causes a loss. Ask for the full contract, read the insurance section, and match each requirement to an endorsement before issuing a certificate. Watch for flow-down clauses as well. A subcontract often repeats the owner's insurance terms, so the schedule may need to name the owner and the architect along with the contractor above the insured.

Related terms that come up during contract review:

• Additional insured status for the same party
• Primary and non-contributory wording
• Required certificate of insurance language
• Indemnity clauses and an exculpatory agreement
• Similar waivers required from vendors and subcontractors
• Workers' compensation and auto waivers on separate forms

Common CG 2404 Mistakes and a Review Checklist

Mistake	What is actually true
The endorsement waives recovery against everyone.	Only scheduled parties, or those meeting blanket wording
The waiver removes the other party's legal liability	Injured third parties can still take legal action against them
Every CGL policy includes it.	It must be requested and endorsed.
A certificate checkbox creates the waiver.	Only the endorsement on the insurance policy does
One waiver covers all policies.	Each line needs its own form
The waiver is always free.	Many carriers charge an added premium
Blanket wording needs no contract.	A signed contract must still require it.

What to tell the insured in plain terms:

• The insurer cannot pursue the scheduled party after paying a claim.
• The insured may give up its own recovery rights, too.
• The carrier may charge for the endorsement.
• The waiver does not raise or lower policy limits.

Review checklist before binding:

• Read the written contract's insurance section in full.
• Confirm the scheduled name matches the contract party exactly.
• Decide between specific and blanket wording with the underwriter.
• Check the form edition and any carrier changes.
• Discuss premium impacts and retained losses with the insured.
• Record the request and the carrier's answer in the file.

Blanket wording is the practical choice when an insured signs many contracts that require the waiver, but its trigger is the contract so that a missing signature can defeat it. When contract terms are unclear or appear to conflict, suggest that the insured involve legal counsel before signing. Good risk management here is simple: know which contracts exist, what each one promises, and which endorsements back those promises up. Revisit the list at every renewal, because new jobs and new leases often add parties the old schedule never named.

Good risk management here is simple: know which contracts exist, what each one promises, and which endorsements back those promises up.

Frequently Asked Questions

What is the difference between a waiver of subrogation and the antisubrogation rule?

A waiver is a contract promise backed by an endorsement, while the antisubrogation rule is a legal doctrine. The antisubrogation rule generally bars an insurer from pursuing its own insured. In many jurisdictions it also protects an additional insured for losses the policy covers. Because the doctrine varies by state and loss type, contracts still demand an express waiver.

Is a WOS Endorsement the Same as a CG2404?

Not exactly. The abbreviation is shorthand for any waiver of subrogation endorsement, and the CG 2404 is the standard ISO version for CGL coverage. Carriers may issue their own forms with different wording or a blanket waiver of subrogation schedule. Workers' compensation uses a separate form, WC 00 03 13, which waives the insurer's right to recover from others. Check each policy the contract names.

How does subrogation relate to the collateral-source rule?

This rule generally keeps a wrongdoer from reducing tort damages because the injured party had insurance. Subrogation then prevents duplicate recovery by letting the insurer that paid pursue the wrongdoer responsible for the loss. A waiver removes that subrogation action for the scheduled party, so the paying insurer absorbs the loss instead of seeking reimbursement. State law on both rules differs.

Is a waiver of subrogation the same as a waiver of transfer of rights?

Yes, in practice the terms describe the same thing. ISO titles the CGL condition as a transfer of rights of recovery, so its endorsement uses waiver of transfer of rights language instead of the word subrogation. Contracts may use either phrase. What matters is that the endorsement schedule covers the party and the operations the contract requires, which keeps contractual risk with the right policy.

Should an agency keep a waiver of subrogation template for insureds?

Yes, an agency can keep one as an educational sample, not as a substitute for the policy form. It helps an insurance professional show an insured what the endorsement says before signing a contract. The template should never be sent as proof of coverage. Only the endorsement issued by the carrier and attached to the policy satisfies the contractual obligations.