HB 2693 Summary

• Amends Arizona law to clarify that indemnity agreements in construction and architect-engineer contracts cannot require one party to indemnify another for that party's sole negligence, as this violates public policy.

• Adds four new exemptions to the indemnification restrictions: agreements for indemnification of sureties on bonds, agreements between insurers and named insureds, agreements between insurers and additional insureds (subject to limitations), and agreements between an insurer and multiple insureds under a single policy for a defined project.

• Specifies that insurers cannot be excused from their duty to defend and indemnify insureds under multi-party project or workplace policies, even with indemnification agreements between the insureds themselves.

• Expands the definition of "construction contract" to include actual or proposed construction projects and clarifies that "architect-engineer professional service contract" includes survey services.

• Effective date: December 31, 2013.