Product Update

Construction and Motor Carrier Transportation Anti-Indemnity Statutes Updated in Contractual Risk Transfer

This release of Contractual Risk Transfer (CRT) contains an updated and expanded discussion of construction anti-indemnity statutes as well as an updated discussion of motor carrier transportation anti-indemnity statutes.

Construction anti-indemnity statutes define the scope of permissible indemnity under the contract. It is important to remember that the scope of such permissible indemnity differs by state. For example, certain construction anti-indemnity statutes may prohibit the transfer of any liability attributable to the indemnitee's negligence, or alternatively, such statutes may prohibit only the transfer of liability arising from the indemnitee's sole negligence. In addition, some construction anti-indemnity statutes limit the ability of one contracting party to require additional insured status under the other party's insurance policies. Learn more about construction anti-indemnity statutes, including how courts interpret these statutes as well as the impact of construction anti-indemnity statutes on insurance requirements in this CRT release.

Indemnity provisions are routinely found in motor carrier transportation contracts. However, shippers usually have more economic power than motor carriers do and, therefore, have typically demanded that motor carriers indemnify the shippers for any losses, claims, and damages arising out of the services to be performed under the contract, even if the damages were caused by the shipper's own negligence or intentional acts. Since the majority of motor carriers are small entities with little negotiating power, such shifting of liability was perceived by many in the transportation industry as inequitable and ultimately led to the enactment of motor carrier transportation anti-indemnity statutes by 46 states. This CRT release contains an updated discussion of motor carrier transportation anti-indemnity statutes, including updated summaries of each state's motor carrier transportation anti-indemnity statutes. States that do not have motor carrier transportation anti-indemnity statutes are also noted.