SB24 Summary

• Prohibits construction contracts from requiring a party to indemnify another party for liability caused solely by the indemnitee's negligence, wantonness, recklessness, or intentional misconduct.

• Allows indemnification for the indemnitee's negligent acts only if the contract includes a specific monetary limitation on indemnification and the indemnitor obtains commercially available insurance covering that amount.

• Limits enforcement of indemnification provisions to the amount of applicable insurance required in the construction contract.

• Declares that violating indemnification provisions do not invalidate entire contracts; courts shall modify violations to comply with the law while preserving remaining contract terms.

• Effective January 1, 2024, for any construction contracts executed or awarded on or after the effective date, with specific exemptions for design professional services contracts and road/bridge construction contracts under existing Alabama law.