Anti-Indemnity Statutes Cave To Insurance Obligation

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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.