Source: https://blogs.duanemorris.com/constructionlaw/2012/01/05/another-state-joins-list-of-anti-additional-insured/
Timestamp: 2020-02-25 16:22:50
Document Index: 272087120

Matched Legal Cases: ['§151', '§13', '§28', '§56', '§15', '§30', '§13']

Another State Joins List Of Anti-Additional Insured. | Duane Morris Construction Law
The anti-indemnity prohibition includes elements of particular note such as its (1) application to agreements with architects and engineers, (2) application to attempted indemnity for indemnitee’s breach of contract in addition to negligence, (3) application to contracts “collateral to or affecting a construction contract”, (4) non-application to claims for bodily injury or death of an employee of the indemnitor or its agent or subcontractor of any tier, (5) non-application to municipal contracts, and (6) non-application to particular types of other agreements, not the least of which include insurance policies.
The bill started out as a means to address contractor concerns for coverage under controlled insurance programs (e.g. wrap-up, OCIP or CCIP) which can be limited when it comes to completed operations coverage. The bill requires that such programs include completed operations coverage for a minimum of three years. Although attempts were made to have such programs cover the applicable statute of repose, that extended term and other insurance provisions did not garner approval.
The anti-indemnity and additional insured provisions had been the subject of a bill in the prior legislature, but that got held up and was never put to a vote. The Senate chamber then used the controlled insurance bill as a means to put the anti-indemnity and additional insured provisions into play in an amendment that ultimately won approval of the House.
As noted above, the additional insured prohibition is a growing trend spear-heading by subcontractor trade associations throughout the country which started only a few years ago and may be coming to a state near you sometime soon. If that lowers insurance costs at the contractor level and the subcontractor level, then perhaps it’s a win-win all around.
[1] Tex. Ins. Code §151.001, et seq. See here and here.
[2] Col. Rev. Stat. §13-21-111.5(6)(b)
[3] Kan. Stat. Ann. 16-121(c)
[4] Mont. Code Ann. §28-2-2111
[5] N.M. Stat. §56-7-1
[6] Okla. Stat. §15-221(b)
[7] Or Rev Stat. §30.140
[8] Utah Code Ann. §13-8-1
← The Nuclear Regulatory Commission Approves Amended Version of AP1000 Nuclear Reactor Design for Use in the United States	Pennsylvania Superior Court Holds that Unions May File Mechanic’s Liens for Unpaid Contributions →