Construction Contracts: Waivers of Subrogation, Indemnification, and Contribution

Subrogation waivers in construction contracts often do not command the attention from counsel that is needed to protect their clients, especially since these insurance provisions can have a significant impact on the financial situation of the contracting parties.

In interpreting waiver provisions, courts often look at other contract provisions, particularly the allocation of risk through insurance, to discern the intent of the parties. Subrogation waivers must also be reconciled with contractual indemnity and other contribution provisions. In some states, subrogation is implicitly waived when there is builder's risk insurance in place.

A contract that contains a waiver of subrogation must also be reconciled with the terms of the underlying insurance policy. The insured waiving the right of subrogation may face a denial of coverage under policy terms.

Listen as our authoritative panel of practitioners analyzes waivers of subrogation in construction contracts, the validity and effect of waivers, the impact of waivers on contractual indemnification and contribution clauses, how courts interpret waiver provisions, and the impact on all parties to the contract.

Outline

• Overview of insurance subrogation in construction contracts
• Relationship between waiver of subrogation clause and other potential relevant contract language

• Impact on all parties to the contract

• Recent case law: interpreting waiver provisions

Benefits

The panel will review these and other key issues:

• What is generally the scope of a construction subrogation waiver?
• How are courts interpreting waiver of subrogation provisions in construction defect matters?
• What other contractual provisions will courts look at when interpreting the waiver of subrogation provision?
• How do contractual indemnification provisions impact subrogation waivers?

For more information, please visit the event page.