HB 409 Summary

• Prohibits construction contracts valued at $50,000 or more from requiring a party to indemnify, defend, or hold harmless another party for damages caused by the other party's negligence, wantonness, recklessness, or intentional misconduct.

• Allows indemnification provisions only to the extent liability arises from the indemnifying party's own negligence, recklessness, wantonness, or intentional conduct or that of its officers, employees, or agents.

• Prohibits construction contracts from requiring additional insured insurance coverage for claims arising from the second party's own negligent, reckless, wanton, or intentional conduct.

• Does not apply to indemnity obligations between principals and sureties on construction bonds or between insurers and their insureds.

• Becomes effective immediately upon passage and approval by the Governor.