SB 1013 Modifies the law that limits indemnity agreements in construction work contracts
Sponsor: Lembke
LR Number: 5234S.01I Fiscal Note:
Committee: Judiciary and Civil and Criminal Jurisprudence
Last Action: 3/4/2010 - Second Read and Referred S Judiciary and Civil and Criminal Jurisprudence Committee Journal Page: S523
Title: Calendar Position:
Effective Date: August 28, 2010

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Current Bill Summary


SB 1013 - Under current law, Section 434.100, RSMo, most indemnities for construction work are considered void and against public policy. Unless one of the statute's exceptions applies, a party to a contract for construction work cannot transfer a significant portion of its project risks to others via a broad indemnity agreement. The current statute contains nine exceptions to the general rule that these types of indemnity agreements are void.

Under this act, the general prohibition against indemnity agreements is expanded to specifically prohibit agreements to hold harmless the negligence of the party's employees, or agents. The current law only specifically prohibits agreements that hold harmless another person from that person's own negligence.

Under current law, the anti-indemnity provision does not apply to a party's own promise to hold another party harmless from the party's own negligence. This act expands the exception to include the party's officers, employees, and agents.

The act modifies the additional insured exception by providing that the anti-indemnity prohibition does not apply to a party's promise to purchase project-specific insurance policies, other types of protective liability insurance policies, or builder's risk insurance.

The act expands the definition of "construction work" and defines the terms "indemnify" or "hold harmless" as including any requirement to name the indemnified party as an additional insured in the indemnitor's insurance coverage for the purpose of providing an indemnification for any liability not otherwise allowed.

This act is similar to SB 311 (2009) and SB 1077 (2008).

STEPHEN WITTE