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Structuring Construction Contract Insurance, Indemnification, and Limitations on Liability Clauses

Recording of a 90-minute CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Tuesday, March 21, 2023

Recorded event now available

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This CLE webinar will provide attendees with approaches for crafting contractual insurance requirements and indemnification provisions, as well as negotiation strategies to mitigate risk. The panel will also address case law and various state anti-indemnity statutes that limit the enforcement of indemnity provisions in construction contracts.

Description

Parties to a construction contract rely on indemnification and insurance provisions to allocate risk, and liability for injuries and other losses during construction. However, the parties must draft clauses that will meet their risk mitigation objectives—boilerplate, arcane, or hastily-drafted language may result in unintended consequences.

Construction-related indemnity provisions are subject to states' anti-indemnity statutes, which limit the scope of liability that parties may transfer by contract. Understanding variances among the states' laws and judicial opinions interpreting such laws is crucial to avoid unfavorable results.

Through carefully drafted indemnification and insurance provisions, counsel to parties in construction contracts can proactively address future risks and minimize the likelihood of future disputes.

Listen as our authoritative panel of construction law attorneys discusses best practices for drafting and negotiating insurance and indemnification provisions that effectively mitigate risk.

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Outline

  1. Drafting insurance provisions
    1. Selecting insurance coverage
    2. Additional insured endorsements
    3. Certificates of insurance
  2. Drafting indemnification provisions
    1. Most common types of state anti-indemnification statutes
    2. Forms and levels of severity of indemnification
    3. Review statutory and case law on anti-indemnification
    4. Clearly define indemnification terms
    5. Determine scope of indemnification
    6. Third-party beneficiaries
  3. Interplay between insurance and indemnification provisions

Benefits

The panel will review these and other crucial issues:

  • What approaches have proven effective for construction counsel in negotiating indemnification and insurance provisions in construction contracts?
  • How have various states' anti-indemnity statutes impacted the ability to shift liability from contractors to subcontractors in construction contracts?
  • How can parties to a construction contract identify the optimal types and terms of insurance coverage for their specific project?
  • What is the interplay between insurance and indemnification provisions in construction contracts?

Faculty

Bobotek, James
James P. (Jamie) Bobotek
Partner
Pillsbury Winthrop Shaw Pittman

Mr. Bobotek guides clients through all phases of development and construction of commercial properties, including...  |  Read More

Taubenfeld, David
David R. Taubenfeld
Partner
Haynes & Boone

Mr. Taubenfeld represents policyholders in every kind of dispute they may have with their insurers. He represents...  |  Read More

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