SB259 Alabama 2020 Session

Summary

Primary Sponsor

Clay Scofield

Republican

Session

Regular Session 2020

Title

Highway, roads, and bridges, contracts or subcontracts for public works, provisions requiring a party to indemnify another party for damages caused by the other party prohibited

Summary

SB259 would bar indemnity and certain insurance provisions in private road-and-bridge public works contracts, requiring parties to be responsible for damages caused by their own conduct.

What This Bill Does

This bill bars private road or bridge public works contracts from requiring indemnification for damages caused by the other party's own negligence or misconduct, and such terms would be void. It allows indemnity only to the extent that damages are caused by the indemnifying party's own fault. It also restricts additional insured provisions so coverage cannot be broader than the indemnity allowed, and it does not apply to surety bonds or insurer obligations; it applies only to private-party contracts for roads/bridges and does not affect third-party tort claims or DOT obligations. The act becomes effective immediately after the Governor signs it into law.

Who It Affects

• Private contractors and subcontractors entering into public works contracts for roads or bridges: cannot include or enforce indemnification for damages caused by the other party's negligence or misconduct; any such provision would be void, and indemnity must be limited to the indemnifying party's own fault.
• Insurance providers and contracting parties offering additional insured status: cannot require broad additional insured coverage beyond what the indemnity allows.

Key Provisions

• Section 3: Prohibits requiring indemnify, hold harmless, or defend for liability due to the negligence, wantonness, recklessness, or intentional misconduct of the indemnified party; such provisions in contracts entered after the act's effective date are void.
• Section 4: Permits indemnity but only to the extent that liability is caused by the negligence, wantonness, recklessness, or intentional conduct of the indemnifying party or its officers, employees, or agents.
• Section 5: Prohibits providing insurance as an additional insured for claims arising from the other party's own conduct; any additional insured coverage cannot be broader than the indemnity scope allowed in Sections 3 and 4.
• Section 6: Excludes indemnity of a surety by a principal on a construction contract bond or indemnity of an insurer's obligations to its insureds.
• Section 7: Applies only to indemnity contracts between private parties for roads or bridges and has no effect on third-party tort claims.
• Section 8: Does not affect contractual obligations owed by any contracting party to the Department of Transportation or other awarding entity.
• Section 10: Becomes effective immediately following passage and governor's 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

Highways, Roads, and Bridges