AL SB264

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

Allows indemnification provisions only to the extent that liability or damages are caused by the indemnifying party's own negligence, wantonness, recklessness, or intentional conduct.

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

Exempts principal-to-surety indemnity obligations on construction bonds and insurer-to-insured indemnity obligations from the bill's restrictions.

Applies only to indemnity obligations between construction contract parties and does not affect third-party tort claims, joint and several liability doctrine, or workers' compensation laws; becomes effective immediately upon passage and approval.