On The Hook

Do anti-indemnity statutes always protect you?

By Jeremy P. Brummond

Construction contracts often include “indemnity” provisions where the “indemnitor” agrees to be responsible for losses incurred by the “indemnitee” or claims asserted against the indemnitee such as personal injury or property damage claims. 

Indemnity provisions come in all shapes and sizes. Some indemnity provisions are relatively narrow in scope with the indemnitor agreeing to be responsible only for damages or claims to the extent they are caused by the indemnitor’s errors. Others are broader and are often referred to as “intermediary” indemnity provisions – this is when the indemnitor’s error contributed to the damages and claims and the indemnitor claims full responsibility even if the damages were not entirely the indemnitor’s fault. To go a step further, there are “broad form” indemnity provisions where an indemnitor broadly agrees to be responsible for all damages and claims relating to the work, even if caused solely by the indemnitee.