HB587 Alabama 2021 Session

Summary

Primary Sponsor

Chip BrownRepresentative

Republican

Session

Regular Session 2021

Title

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

Summary

HB587 would regulate contracts for design professionals by banning certain liability-shifting terms and setting a standard of care, while allowing specific insurance and project-scope provisions.

What This Bill Does

It defines a design professional (architect, landscape architect, surveyor, engineer, or geologist) and restricts post-enactment contracts from forcing indemnification, defense, or additional insured status beyond the design professional's liability or insurance coverage, and from imposing a different standard of care. It allows limited exceptions for certain provisions, such as listing an additional insured and covering related costs, or proportional attorney fees, as long as they don’t conflict with the prohibitions. It requires design professionals to perform services with the skill and care ordinarily provided by competent professionals, and it clarifies that scope, fees, and schedule terms may be included if they align with that standard. It also preserves existing insurance contracts and joint liability rules, and specifies when the act takes effect.

Who It Affects

• Design professionals (architects, landscape architects, surveyors, engineers, and geologists) in Alabama, who would face restrictions on indemnity, defense obligations, and additional insured requirements in contracts.
• Clients or contracting parties hiring design professionals, who would gain protections from certain liability-shifting terms and still be able to include permitted terms about scope and fees.
• Insurance providers and underwriters, due to changes in requirements around additional insured status and coverage terms.
• Public awarding authorities, as liability rules related to design professional services remain limited and not shifted to public entities.

Key Provisions

• Provision 1: Prohibits contract provisions that require the design professional to indemnify or hold harmless for liability beyond the design professional's own liability, including acts of negligence, recklessness, or professional errors, and beyond what is covered by the design professional's liability insurance.
• Provision 2: Prohibits contract provisions that require the design professional to defend against claims unless those claims are covered by the design professional's professional liability insurance.
• Provision 3: Prohibits contract provisions that require the design professional to list a party as an additional insured on the design professional's professional liability policy (with limited carve-outs).
• Provision 4: Prohibits contract provisions that impose a standard of care different from the ordinary standard of care described in the bill; the ordinary standard applies if there is a conflict.
• Provision 5: Carve-outs allowing (a) listing an additional insured on certain policies and providing coverage, (b) reimbursement of reasonable attorney fees or costs in proportion to the design professional's liability, or as they participate in a claim resolution, and (c) other provisions not in conflict with the prohibitions.
• Provision 6: The contract must require the design professional to perform with the skill and care ordinarily provided by a competent design professional under similar circumstances and licenses; if the contract sets a different standard, the ordinary standard applies.
• Provision 7: Permitted terms about scope, fees, and project schedule are allowed if they conform to the standard of care and do not conflict with the prohibitions.
• Provision 8: The act does not make a public awarding authority responsible for proportionate negligence, nor does it authorize shifting liability to public entities beyond existing law.
• Provision 9: The act does not invalidate existing insurance contracts, workers' compensation, or related coverage documents, and does not change joint and several liability or workers' compensation laws.
• Provision 10: Effective date—becomes law on the first day of the third month following passage and governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Professions and Businesses