What is a waiver of subrogation and when is it necessary?

A waiver of subrogation is an important legal document in construction law in Maryland. It is a type of agreement between two or more parties where one party agrees to not hold the other responsible for any damages that may occur during the course of a construction project. For example, if a contractor provides materials, labor, or services for a project, and the project owner pays for the costs, the contractor may agree to a waiver of subrogation. In this agreement, the contractor agrees that if any damages occur from the project, the contractor will not seek reimbursement from the project owner. This waiver protects the project owner from being responsible for the costs associated with any property damages. Waivers of subrogation may also be used to protect parties from potential losses or liabilities if an insurance policy must pay out on a claim. This waiver requires that one party to the contract will not sue the other for any damages or losses that the insurance company pays out. Waivers of subrogation are an important part of construction law in Maryland. They help protect both the contractor and project owner from potential losses or liabilities arising out of a construction project. They also provide a way for all parties to clearly delineate their rights and responsibilities when it comes to potential damages.

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What is a waiver of subrogation and when is it necessary?

What is a waiver of subrogation and when is it necessary?

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