Common use of Lapse of Insurance Clause in Contracts

Lapse of Insurance. In the event Construction Manager loses insurance coverage, Construction Manager shall cause all work on the project to stop and shall immediately notify Owner of such cancellation or other loss of insurance coverage. Owner shall withhold any future payments due to Construction Manager until the matter is resolved. Owner reserves the right to pursue any legal action necessary to cover losses. If Construction Manager procures replacement insurance in accordance with Contract Documents, Owner reserves the right to allow Construction Manager to continue work. There shall be no time credit for days not worked pursuant to this section.

Lapse of Insurance. In the event Construction Manager loses insurance coverage, Construction Manager shall cause all stop work on the project to stop and shall immediately notify Owner of such cancellation or other loss of insurance coverage. Owner shall withhold any future payments due to Construction Manager until the matter is resolved. Owner reserves the right to pursue any legal action necessary to cover losses. If Construction Manager procures replacement insurance in accordance with Contract Documents, Owner reserves the right to allow Construction Manager to continue work. There shall be no time credit for days not worked pursuant to this section.