Product Update

Anti-Indemnity Statutes and Additional Insured Endorsements Updated in Construction Risk Management


Release 4–2020 of Construction Risk Management includes updated summaries of state construction anti-indemnity statutes and an updated discussion of additional insured endorsements for use in construction.

All but a handful of states have a construction anti-indemnity statute that limits the amount of liability that can be legally transferred to another party. The statutes vary in the types of construction they apply to (public and/or private), the types of contracts they apply to (design and/or construction), and the maximum scope of allowable indemnity. Some states also restrict the ability to use additional insured coverage to transfer risk that cannot be legally transferred in the indemnity agreement. State Construction Anti-Indemnity Statutes includes a summary of how each state's anti-indemnity statute addresses these issues as well as notable exceptions to the statute.

The portfolio of standard Insurance Services Office, Inc., endorsements was expanded to include automatic additional insured endorsements for completed operations, where previously only a scheduled endorsement was available. Two new additional insured endorsements allow contractors to automatically provide additional insured status to parties with whom they contract as well as those with whom they do not have a direct contractual relationship but are nevertheless required to provide additional insured status. For example, a subcontractor is often required to provide additional insured status for ongoing and completed operations to both the general contractor (with which it has a contractual relationship) and the project owner (with which it does not).