SB261 Alabama 2021 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Clyde ChamblissSenator
Republican
Session: Regular Session 2021
Title: Professions and Businesses, design professional, contracts for professional services of, provided
Summary: SB261 sets rules for contracts with design professionals that limit certain indemnity and defense requirements and establish a standard of care for professional services.
What This Bill Does
It bars contract terms that require design professionals to indemnify or defend beyond their own negligence, or to cover claims not insured by their professional liability policy, and it prohibits requiring listing the design professional as an additional insured on their professional liability policy. It also prohibits imposing a different standard of care from the ordinary standard of care of a competent design professional. The act allows certain exceptions, such as listing an additional insured on other policies and partial attorney fee reimbursement, and it requires performance to meet the ordinary skill and care of a competent professional. It does not change existing insurance contracts or joint liability rules and becomes effective July 1, 2021.

Who It Affects
Design professionals (licensed or authorized in Alabama to practice architecture, landscape architecture, surveying, interior design, or geology) who provide professional services and would be affected by restrictions on indemnity, defense, and additional insured provisions, as well as the standard of care requirements.
Clients and contracting parties (owners, indemnitees, and public awarding authorities) who must draft contracts within these rules and may use allowed terms such as certain insured provisions and attorney fee reimbursement, while ensuring compliance with the standard of care.

Key Provisions
Indemnity and defense restrictions prohibit requiring the design professional to indemnify or defend beyond liability for the design professional's own negligence or acts by the professional or their agents, and prohibit defense against claims not covered by their professional liability insurance.
Prohibits requiring the design professional to list a party as an additional insured on the design professional's professional liability insurance.
Prohibits imposing a standard of care that is different from the ordinary skill and care of a competent design professional; if a contract sets a different standard, the ordinary standard applies.
Allows certain exceptions and permissible terms, such as listing an additional insured on other policies (general liability or auto), reimbursement of reasonable attorney fees in proportion to liability, and other provisions that do not conflict with the restrictions.
Contracts must require the design professional to perform with the skill and care ordinarily provided by a competent professional under similar circumstances and licensure; scope, fees, and schedule terms may be included if they comply with the standard of care.

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