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Indiana Legal Development: Subcontractors may face rise in subrogration claims from general contractors’ insurers
Posted in Real Estate

Brad Wilt, Aaron Rose and Meg Christensen recently authored an article on an Indiana Supreme Court decision that will impact insurance claims in the construction industry. A preview is below.

Until recently, Indiana law did not require a general contractor’s general liability insurance policy (CGL) to cover unexpected faulty workmanship performed by a subcontractor. However, a recent Indiana Supreme Court decision, Sheehan Construction Company, Inc. v. Continental Casualty Company, may require coverage (depending on the policy language) and increase the risk that a general contractor will attempt to blame its subcontractors for any alleged faulty workmanship. The facts of the Sheehan Construction case are typical for residential faulty workmanship claims. The homes were built by a general contractor that utilized subcontractors for certain portions of the work. Homeowners then began experiencing leaks that were allegedly caused by the faulty workmanship of the subcontractors. Read the full article >>

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