SB126 Alabama 2020 Session

Summary

Primary Sponsor

Clyde ChamblissSenator

Republican

Session

Regular Session 2020

Title

Professions and Businesses, design professional, contracts for professional services of, provided

Summary

SB 126 limits risk-shifting in design professional contracts and sets a standard of care for their services.

What This Bill Does

It voids contract provisions that would require a design professional to indemnify or defend others for damages beyond negligence or to name them as an additional insured on professional liability insurance. Contracts may instead allow the design professional to be named as an additional insured on general liability and auto policies and to have defense provided under those policies, or to reimburse the indemnitee's reasonable attorney fees in proportion to the design professional's liability. The design professional must perform services with the ordinary skill and care of a competent professional, and if a different standard is stated, the ordinary standard applies. The act does not affect existing insurance contracts or workers’ compensation, and it becomes effective on the first day of the third month after passage and governor approval.

Who It Affects

• Design professionals (licensed architects, landscape architects, surveyors, engineers, and geologists) who would be protected from certain indemnity/defense requirements and must meet the standard of care.
• Clients/owners and other project indemnitees who hire design professionals and may rely on allowed insurance provisions and attorney-fee reimbursement, under the bill’s rules.

Key Provisions

• Definition of design professional: a person or entity licensed or authorized in Alabama to practice architecture, landscape architecture, surveying, engineering, or geology.
• Prohibited contract terms: a contract cannot require the design professional to indemnify or defend against liability beyond negligence (and related harms), or require naming the design professional as an additional insured on professional liability insurance.
• Allowed contract terms: contracts may require the design professional to name an additional insured on general liability and auto liability policies and provide defense under those policies, or provide for reimbursement of the indemnitee's reasonable attorney fees in proportion to the design professional's liability.
• Standard of care: contracts must require performance with the ordinary skill and care of a competent design professional; if a different standard is stated, the ordinary standard governs.
• Scope, fees, and schedule: contracts may include conditions about scope, fees, and schedule as long as they conform to the standard of care.
• Other clarifications and effective date: the act does not affect existing insurance contracts or workers' compensation, does not alter joint liability or workers’ compensation law, and becomes effective on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Professions and Businesses