The Cokinos | Young Insurance Coverage Team is observing a ten-year anniversary as to the Texas Anti-Indemnity Statute at Chapter 151 of the Texas Insurance Code. That statute went into effect on January 1, 2012, as to primary construction contracts entered into between the owner and the contractor on or after that date. In other words, any original contract that is less than ten years old as of January 1, 2023, is subject to Anti-Indemnity Act. As to subordinate subcontracts, purchase orders and other agreements, they are governed by the date of the primary contract for the same project.
Of course, when the Anti-Indemnity Act applies, a construction contract is void to the extent it purports to indemnify the indemnitee for its own negligence or fault. That prohibition is subject to an employee injury exception, which permits parties to require indemnification for their own negligence in personal injury claims by the indemnifying party’s employee. The most common example is a third-party over action by an employee of a lower-tier contractor against an upper-tier contractor or owner.
While ten years have already passed, many issues as to the applicability of the Anti-Indemnity Act persist, including issues relating to additional insured provisions in construction contracts. The C|Y Insurance Coverage Team continues to monitor these issues, so please contact them with questions here.
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Cokinos | Young has led Texas construction and real estate law for over three decades. And today, our 100+ dedicated professionals operate coast to coast and proudly handle all aspects of construction law for owner/developers, project managers, general contractors, design professionals, subcontractors, sureties, and lenders. We provide both dispute resolution and transactional services to clients through all phases of commercial, industrial, pipeline, offshore, civil, and residential construction. Our reputation was built on relentless commitment to client service and the industries we serve, and that remains our primary driver. Dedicated. Resilient. Expertise. That’s Cokinos | Young. Learn more at cokinoslaw.com.