Changes to Indemnity Law

CapitolCowboy

Effective January 1, 2012, the Texas legislature passed a new Texas Anti-Indemnity Statute (H.B. 2093).

The new statute prohibits broad-form indemnity agreements on construction contracts entered into on or after January 1, 2012.

Under the old statute, construction project participants could agree to indemnify each other even for those damages arising solely out of the negligence of the indemnitee.

Under the new statute, such agreements are unenforceable, with some exceptions, the most notable being that construction participants may still agree to indemnify others for any injuries or death to the indemnitor’s employees.

The new clause will fundamentally change the way risk is allocated on construction projects, and construction industry participants are encouraged to discuss with their attorneys how to best protect themselves in this shifting legal environment.

Questions?  Contact Will Allensworth.