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Reciprocal Waiver Survives Breach Of Contract Insurance; Waiver

Saturday, December 03, 2005 04:41 pm

Reciprocal Waiver Survives Breach Of Contract Insurance; Waiver

An Indiana court has ruled that a reciprocal waiver of claims for insured property losses applied regardless of the breach of contract by a subcontractor.

The Metropolitan School District of Perry Township awarded a contract to Future Construction, Inc. to build a warehouse in Indianapolis. The contract called for Future to maintain builder's risk insurance on the work in progress. Future then awarded a subcontract to S. C. Nestel, Inc., utilizing AIA Document A401, "Standard Form of Agreement between Contractor and Subcontractor."

The AIA subcontract form included a mutual waiver of claims f [...]

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