Anti-Indemnity Statutes Cave To Insurance Obligation
March 24, 2011, 1:49 PM EDT
Law360, New York (March 24, 2011, 1:49 PM EDT) -- Almost all states have one form or another of an anti-indemnity statute applicable to construction agreements. These statutes typically invalidate provisions that purport to indemnify one party for liabilities arising from their own negligence. The policy reasons behind the statute appear sound. The problem is that insurance obligations immediately fill the void, thereby undermining the statute’s goals by simply shifting the indemnification to the insurer.
There are three general types of indemnification agreements. The first is a limited form of indemnity, which requires indemnification of the...