Downstream Insurance Coverage for Construction Projects: Vetting Strategies, Navigating Anti-Indemnity Laws

This CLE webinar will guide counsel for project owners, general contractors, and subcontractors on mitigating the risks associated with the upstream/downstream dynamics of construction projects. The panel will discuss strategies for vetting downstream insurance coverage and minimizing risk for all parties by balancing indemnification and other terms between the parties while navigating state anti-indemnity statutes.

While parties to construction projects have historically relied on indemnification and additional insured provisions to manage risk between upstream and downstream parties to the contract, nearly all states have enacted anti-indemnity statutes that curtail these provisions to varying degrees.

For example, a Texas statute voids an indemnity provision in a construction contract if it requires the indemnitor to indemnify, defend, or hold harmless the indemnitee for a claim caused in whole or in part by that indemnitee's own negligence. The law also prohibits requiring the purchase of additional insured coverage that would cover the indemnitee's negligence. Other states have similar laws.

In the construction industry, comprehensive vetting of downstream parties' insurance coverage is vital yet challenging. So, counsel should understand vetting strategies to protect their clients' interests while maintaining compliance.

Listen as our panel of experienced construction lawyers provides expert guidance on vetting downstream insurance coverage for construction projects and offers critical insight on contract terms, pitfalls to avoid, and mitigating risk.