SB257 Alabama 2021 Session

Summary

Primary Sponsor

Clyde ChamblissSenator

Republican

Session

Regular Session 2021

Title

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

Summary

SB257 would regulate contracts for design professionals by limiting certain indemnity and insurance terms and by setting a standard of care for professional services.

What This Bill Does

It bars contract provisions that require design professionals to indemnify or defend others for non-negligent damages, or to name a party as an additional insured on professional liability, or to apply a different standard of care. It allows contracts to require additional insured status on general and auto liability policies and to reimburse an indemnitee's reasonable attorney fees proportional to the design professional's liability. It requires design professionals to perform services with the standard of care ordinarily provided by competent professionals, and if a contract uses a different standard, the usual standard applies. It also states that existing insurance contracts remain valid and sets an effective date for the law after passage.

Who It Affects

• Design professionals in Alabama (architects, landscape architects, surveyors, engineers, geologists) and their contracting clients
• Clients or indemnitees who hire design professionals and insurers (including subconsultants and suppliers) who may be affected by indemnity and insurance terms

Key Provisions

• Contracts cannot require indemnification or defense for professional liability beyond negligence or certain intentional acts, and cannot require additional insured status on professional liability insurance
• Contracts may require additional insured status on general liability and automobile liability policies and may provide defense under those policies
• Contracts may require reimbursement of the indemnitee's reasonable attorney fees proportional to the design professional's liability
• Design professionals must perform with the skill and care ordinarily provided by competent professionals in similar circumstances and licenses; if a contract sets a different standard, this ordinary standard applies
• Contracts may include reasonable scope, fee, and schedule terms as long as they follow the standard of care
• The act does not affect existing insurance contracts or workers' compensation, and does not alter state liability laws
• Effective date: the act becomes law 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