What must the Workers' Compensation policy include regarding subrogation?

The inclusion of a waiver of subrogation in a Workers' Compensation policy is essential as it protects the contractor and the hiring entity from potential future claims or lawsuits that could arise if a worker experiences an injury on the job. By including a waiver of subrogation, the insurance company relinquishes its right to recover costs from the contractor or other parties after a claim has been paid. This is especially important in contracting environments where multiple parties might be involved.

The goal of such a policy is to ensure that all parties maintain a cooperative relationship, allowing for smoother project execution without the fear of litigation from an injured worker's compensation claims. This element also encourages a focus on workplace safety, as it removes some of the financial implications that could lead to disputes among parties involved.

In contrast, having no requirements or providing additional coverage for workers does not directly address the risks associated with potential legal claims post-accident. Similarly, a higher limit of coverage does not prevent or mitigate the risks associated with subrogation claims. Therefore, having a waiver of subrogation is critically important to maintaining safe and cooperative working relationships in the construction industry.