Written by Justin Goodman, CIC, CRIS, CCIP, CEO and Co-Founder, Total CSR Published: August 26, 2026 · Last reviewed: August 26, 2026
In plain language: CG 24 04 stops an insurance company from going after a specific party to recover money it paid out on a claim. It’s added when a contract requires one business to give up its insurer’s right to sue another business for reimbursement, even if that other business caused the loss.
Technical definition: CG 24 04 is an ISO Commercial General Liability endorsement that waives the insurer’s right of subrogation against a person or organization designated in the schedule, but only to the extent required by a written contract executed before the loss.
CG 24 04 at a Glance
| Attribute | Detail |
|---|---|
| Also known as | Waiver of Subrogation Endorsement, Waiver of Rights of Recovery |
| Category | Liability policy endorsement |
| Lines of business | Commercial General Liability |
| Industries most affected | Construction, real estate, property management, manufacturing |
| Related forms or endorsements | CG 20 10 (Additional Insured – Owners, Lessees or Contractors), CG 20 37 (Additional Insured – Completed Operations) |
| Who bears the risk | The insurer loses recovery rights; the named insured’s loss history may be affected |
| Common solution | Add CG 24 04 with the waived party scheduled and reference the underlying written contract |
| Also interacts with | Indemnification clauses, additional insured status, hold harmless agreements |
Key Takeaways
- CG 24 04 waives an insurer’s right to recover claim payments from a specified party, typically because a contract requires it.
- Agencies see this endorsement constantly in construction and lease contracts, and missing it can leave a client in breach of contract.
- The most common pitfall is assuming the waiver applies automatically; it only applies to the extent required by a contract signed before the loss, and only to parties actually scheduled on the form.
- Agencies should confirm the waiver is added before work begins or the lease is signed, not after a claim, since the endorsement generally cannot apply retroactively.
What Is CG 24 04 in Insurance?
CG 24 04 is the ISO endorsement number for the Waiver of Transfer of Rights of Recovery Against Others to Us endorsement, commonly called a waiver of subrogation. Subrogation is the legal doctrine that lets an insurer step into its insured’s shoes after paying a claim and pursue the party actually at fault. Contracts between businesses, especially construction contracts, often require one party to give up that recovery right against the other so that a single loss doesn’t spawn a second lawsuit between contracting partners.
The endorsement exists because commercial relationships depend on predictable risk allocation. A general contractor hiring a subcontractor wants assurance that if the sub’s insurer pays a claim, that insurer won’t turn around and sue the general contractor to recoup the money. Without the waiver, the parties could end up litigating against each other even though both intended the insurance, not the courts, to absorb the loss.
Consider a property owner who leases space to a retail tenant. The lease requires the tenant to waive subrogation rights in favor of the landlord. A pipe bursts in the tenant’s space, damaging tenant property, and the tenant’s property insurer pays the claim. Because CG 24 04 (or the equivalent property form waiver) is in place, the tenant’s insurer cannot sue the landlord to recover that payment, even if the landlord’s maintenance failure caused the leak.
CG 24 04 applies specifically to liability exposures under a CGL policy, distinct from the property-side waiver of subrogation endorsements used on commercial property forms. Both accomplish the same legal goal but attach to different coverage parts.
How Does CG 24 04 Work?
- The contract requirement. A written agreement, such as a construction contract or commercial lease, requires one party to waive its insurer’s subrogation rights against a named counterparty.
- The endorsement request. The agent or broker adds CG 24 04 to the named insured’s CGL policy, scheduling the party who benefits from the waiver.
- The covered loss. A liability claim occurs and the insurer pays the claim on behalf of its named insured.
- The subrogation attempt blocked. The insurer identifies that the scheduled party contributed to the loss but cannot pursue recovery against that party because the waiver applies to the extent required by the pre-loss contract.
- The risk absorption. The insurer’s loss stays a loss; the cost is not recovered from the waived party, effectively shifting that recovery risk back onto the insurer and, over time, the named insured’s loss experience.
Real Claim Examples Involving CG 24 04
Subcontractor injury on a general contractor’s job site
A framing subcontractor’s employee is injured on a job site controlled by the general contractor. The subcontractor’s workers’ compensation carrier pays the claim and would normally have subrogation rights against the general contractor if the GC’s negligence contributed to the injury. Because the construction contract required a waiver of subrogation and CG 24 04 was properly endorsed onto the sub’s liability policy along with the matching comp waiver, the GC is protected from a third-party recovery action even though its site conditions were a factor.
Water damage in a leased retail space
A tenant’s inventory is destroyed when a sprinkler head malfunctions, an event traced to inadequate building maintenance by the landlord. The tenant’s insurer pays the property claim and reviews the lease, which required the tenant to waive subrogation against the landlord. With CG 24 04 in place on the tenant’s liability side and a matching property waiver, the tenant’s insurer absorbs the loss rather than pursuing the landlord, avoiding a dispute that would have strained the lease relationship.
Missing waiver discovered after a crane accident
A crane operator’s equipment damages a neighboring structure during a commercial build. The contract between the general contractor and the crane operator required a waiver of subrogation, but the agent never endorsed CG 24 04 onto the crane operator’s CGL policy. After the insurer pays the third-party claim, it pursues subrogation against the general contractor, who then claims breach of contract against the crane operator for failing to secure the required waiver, exposing the agency that placed the coverage to an E&O claim.
CG 24 04 vs. Additional Insured Endorsement: What Is the Difference?
CG 24 04 and an additional insured endorsement both appear in contract-driven insurance requirements, but they solve different problems. CG 24 04 removes the insurer’s right to recover payments from a specified party after a claim, while an additional insured endorsement extends actual liability coverage to a party who was not originally a named insured.
| Comparison area | CG 24 04 | Additional Insured Endorsement |
|---|---|---|
| Primary use case | Prevents insurer subrogation against a contracted party | Grants direct liability coverage to a contracted party |
| Coverage / concept type | Waiver of recovery rights | Extension of insured status |
| Typical exclusions | Does not apply beyond what the pre-loss contract requires | Often limited to liability arising from the named insured’s work or premises |
| Who is most affected by errors | The party expecting subrogation protection, who may face a lawsuit | The party expecting coverage, who may be denied defense or indemnity |
| Common mistakes | Waiver added after the loss or party not scheduled correctly | Wrong endorsement form used, or ongoing operations form used for completed work |
What Are the Most Common Mistakes With CG 24 04?
- Assuming the waiver applies automatically without a written contract in place before the loss, which leaves the endorsement legally unenforceable for that claim.
- Adding CG 24 04 to the liability policy but forgetting the matching waiver on the workers’ compensation or property policy, leaving a gap in the intended protection.
- Failing to schedule the correct party by name on the endorsement, which can render the waiver ineffective even though the intent was clear.
- Adding the endorsement after a loss has already occurred, since most waivers only apply prospectively under the contract requirement.
- Confusing a waiver of subrogation with additional insured status, leading agents to recommend the wrong endorsement for the contract requirement at hand.
- Not confirming whether the underlying contract language matches the endorsement’s “to the extent required by contract” limitation, which can create a coverage gap if the contract demands a broader waiver than the policy grants.
How to Explain CG 24 04 to a Client
Explaining CG 24 04 to a personal lines client
This endorsement typically doesn’t apply to personal lines policies, but if you’re asked about it in the context of a landlord-tenant lease on a personal property, you can explain it simply: it means your insurance company gives up its right to chase down the other party for money it paid on a claim, even if that party was partly at fault. It’s a way to keep the peace between two parties in a contract.
Explaining CG 24 04 to a small business owner
Think of this as removing a “right to sue” that your insurance company would otherwise have after paying a claim. Your contract with the general contractor or landlord requires you to give that up in their favor. We add this endorsement to your policy so you’re not in breach of that contract, and it typically doesn’t cost much, but it needs to be in place before any work starts or the lease begins.
Explaining CG 24 04 to a CFO or risk manager
CG 24 04 waives your insurer’s subrogation rights against the party named in your contract, to the extent that contract requires it. This is a common risk transfer mechanism in construction and lease agreements, and it needs to be paired with matching waivers on your workers’ comp and property forms if the contract calls for it. We recommend reviewing contract language against the endorsement’s “as required by contract” limitation each renewal to confirm there’s no gap between what’s promised and what’s actually covered.
Frequently Asked Questions About CG 24 04
What does CG 24 04 actually waive?
CG 24 04 waives the insurer’s right to pursue subrogation, meaning the right to recover claim payments, against a specific party named in the endorsement schedule. The waiver only applies to the extent a written contract executed before the loss required it. It does not waive the insurer’s right to deny coverage or defend claims on other grounds.
Does CG 24 04 cost extra?
Most carriers charge little to nothing for CG 24 04, since it doesn’t expand coverage limits or add new exposures, it simply removes a recovery right. Some carriers apply a small flat fee or a minor percentage of premium. Pricing varies by carrier and by how many parties are scheduled.
Can CG 24 04 be added after a loss has occurred?
Generally no, because the waiver only applies to the extent required by a contract signed before the loss. Adding the endorsement after a claim happens typically provides no protection for that specific incident. This is why contract review needs to happen before work starts or a lease is signed, not after.
Is a waiver of subrogation the same as an additional insured endorsement?
No, they serve different purposes even though both often appear in the same contract’s insurance requirements section. A waiver of subrogation removes the insurer’s right to recover payments from a party, while an additional insured endorsement grants that party actual liability coverage under the policy. Contracts frequently require both, and agents need to check for each requirement separately.
Why do general contractors require subcontractors to carry CG 24 04?
General contractors require it to avoid being sued by a subcontractor’s insurer after that insurer pays a workplace injury or property damage claim. Without the waiver, the sub’s carrier could pursue the GC for contributing to the loss, even if the GC is also named as an additional insured elsewhere in the program. Requiring the waiver closes that recovery path and keeps disputes out of the relationship.
Does CG 24 04 waive the insurer’s right of recovery against everyone, or just the party named?
CG 24 04 only waives rights against the specific person or organization scheduled on the endorsement. In Total CSR’s review of agency-submitted endorsement requests, one of the most frequent errors we see is a generic or missing schedule entry, where the agency requests “a waiver of subrogation” without naming the exact contracting party, leaving the endorsement effectively unenforceable for the intended beneficiary.
Related Insurance Terms
- Subrogation: the legal right of an insurer to recover claim payments from a third party responsible for the loss; CG 24 04 exists specifically to waive this right.
- Additional Insured Endorsement: a policy modification that extends liability coverage to a party not originally named as an insured, often required alongside CG 24 04 in the same contract.
- Hold Harmless Agreement: a contract clause where one party agrees to assume liability for certain losses, frequently paired with a subrogation waiver requirement to reinforce the risk transfer.
- Indemnification: a contractual obligation for one party to compensate another for specified losses, which often triggers the need for a waiver of subrogation to prevent circular recovery actions.
- Certificate of Insurance: a document showing proof that required endorsements like CG 24 04 are in place, though the certificate itself does not create coverage.
- Ongoing Operations Endorsement: a related construction endorsement type, such as CG 20 10, that extends additional insured status during active work, often requested in the same contract as a subrogation waiver.
Sources and References
- Cornell Law School, Legal Information Institute. Subrogation.
About the Author
Justin Goodman, CIC, CCIP, CISC, CLCS, CRIS, PCIA, QCLS, MFHR CEO and Co-Founder, Total CSR, Inc.
Justin Goodman is a third-generation insurance broker with over two decades in agency operations. He has trained more than 50,000 CSRs, account managers, and producers in commercial and personal lines coverage, from workers’ compensation to construction risk. He was named 2024 Insurance Journal Agent of the Year and one of the nation’s top five construction insurance experts by Risk & Insurance. He is the author of Retain, which applies cognitive science research on memory and knowledge transfer to insurance training, and speaks nationally on how agencies build durable technical expertise in their teams.