SB 448
Modifies the laws relating to the assignment of liability in contracts for construction work
LR Number:
Last Action:
3/31/2015 - Hearing Conducted S Small Business, Insurance and Industry Committee
Journal Page:
Calendar Position:
Effective Date:
August 28, 2015

Current Bill Summary

SB 448 - Current provisions of law invalidate any contract for construction work which indemnifies another person from that person's own negligence unless an exception applies as specified in law. This act adds that any agreement to insure for liability or defend against liability is also void as against public policy and removes from the list of exceptions an agreement containing a promise to indemnify if the agreement also requires the party to obtain specified limits of insurance and the party had the opportunity to recover the cost of the required insurance in its contract price, as long as the party's liability is limited to the coverage and limits of the required insurance.

The act also provides that each party to a contract for construction work shall be responsible for their own liability or damages arising from their negligence, wrongdoing, or recklessness, and shall not transfer or assign liability to another person. This prohibition does not apply to certain situations specified in the act which includes agreements to insure or defend another person from the party's own negligence or a party's promise to cause another person to be named as an additional insured in a liability insurance contract.

The act modifies the definition of "construction work" and establishes a definition for "person" and "party". The provisions of this act shall apply only to contracts entered into after August 28, 2015.

This act is identical to HB 145 (2015).