Houston – As the end of 2011 quickly approaches, we’ve received many requests from clients and partners to assist them with a better understanding of Texas House Bill 2093, the new construction Anti-Indemnity law which takes effect January 1, 2012. The law applies to all subcontracts, purchase orders and insurance policies related to original construction contracts with owners dated on or after January 1, 2012. The passage of such statutes has gained momentum across the nation in recent years, with approximately 41 states now having some form of anti-indemnity statute. HB 2093 bans both Broad Form and Intermediate Form indemnity and defense provisions and voids additional insured requirements or provisions in policies that would cover the same obligations.
There are some exceptions – Employee personal injury claims, municipal projects, single family, townhouse, duplex or land developments related to them are excluded, as are projects with Consolidated Insurance Programs which have at least 3 years of completed operations coverage. There’s also an important exception for “a cause of action for breach of contract or warranty that exists independently of the indemnity obligation.” If you haven’t already started the process of reviewing and/or revising your contracts and supply agreements then I suggest that you schedule an appointment with both your counsel and your insurance advisor as soon as possible.
Contributed by Bill Andrews; 713.850.4212 or wandrews@andrewsmyers.com.
