NC H871

Declares indemnity and defend agreements in construction and design professional contracts void and unenforceable if they require one party to indemnify another for damages caused by the other party's negligence.

Allows indemnification only when the fault of the indemnitee or its derivative parties (subcontractors, agents, employees) is a proximate cause of the loss, damage, or expense.

Prohibits design professionals from being required to defend promisees against claims for damages proximately caused by professional negligence of either party, unless the defending party's fault is a proximate cause.

Permits recovery of attorneys' fees, litigation expenses, and court costs in otherwise enforceable indemnity provisions when the indemnitee's fault is a proximate cause.

Exempts insurance contracts, workers' compensation agreements, public utilities, railroads, Department of Transportation contracts, and lien or bond claims under Chapter 44A from the restrictions.

Effective August 1, 2019, and applies to contracts entered into, amended, or renewed on or after that date.