SB220 bans broad indemnification clauses in private road and bridge contracts, requiring parties to cover damages they cause and limiting who can be insured.
If enacted, private road/bridge contracts may not require one private party to indemnify another for damages caused by that other party's own negligence or misconduct (the clause would be void). Indemnity may only cover damages caused by the indemnifying party's own negligence or misconduct. The contract may not require broad additional insured status, and any such coverage cannot exceed the indemnity scope. The act applies to private-to-private contracts for road/bridge projects funded by public funds and does not apply to surety bonds or insurers, nor does it alter third-party tort claims or obligations of government awarding authorities.
Transportation and Energy first Amendment Offered
Assigned Act No. 2021-244.
Enrolled
Signature Requested
Passed Second House
Motion to Read a Third Time and Pass adopted Roll Call 755
Third Reading Passed
Read for the second time and placed on the calendar
Read for the first time and referred to the House of Representatives committee on Transportation, Utilities and Infrastructure
Engrossed
Motion to Read a Third Time and Pass adopted Roll Call 527
Scofield motion to Adopt adopted Roll Call 526
Transportation and Energy Amendment Offered
Scofield motion to Adopt adopted Roll Call 525
Transportation and Energy first Substitute Offered
Third Reading Passed
Read for the second time and placed on the calendar with 1 substitute and 1 amendment
Read for the first time and referred to the Senate committee on Transportation and Energy
Source: Alabama Legislature