What's happening
This bill voids and prohibits construction contract provisions requiring additional insured coverage for negligence already prohibited by law.
Why it matters
Closes a major loophole in construction contracts. by explicitly voiding requirements to buy insurance coverage (as an “additional insured”) for risks or negligence that the law already prohibits from being shifted to another party—helping ensure parties can’t sidestep existing anti-indemnity laws through insurance provisions.
Protects subcontractors and smaller construction firms. from being forced to bear the insurance costs and liabilities for a general contractor’s or owner’s own negligence, which can lead to higher insurance premiums and unfair financial burdens.
Clarifies and strengthens the original intent of New York’s anti-indemnity statute. by extending its protections to insurance requirements, not just indemnity clauses—making contract negotiations clearer and reducing potential litigation over who is responsible for damages.
Applies only to new contracts. entered into after the law takes effect, providing certainty for current agreements while setting a clear standard for future construction contract practices.
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Who cares
Headline styles
Ban Extra Insurance in Construction
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
End Extra Insurance Requirements
In Senate Committee · Judiciary · Sponsor John A. DeFrancisco
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5329
2017-2018 Regular Sessions
IN ASSEMBLY
February 8, 2017
Introduced by M. of A. CUSICK, ABINANTI, D'URSO, MORINELLO, SEPULVEDA, TITONE, ZEBROWSKI, COLTON, BICHOTTE -- read once and referred to the Committee on Judiciary
AN ACT to amend the general obligations law, in relation to the invalidity of additional insurance provisions
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 5-322.1 of the general obligations law, as amended by chapter 67 of the laws of 1993, is amended to read as follows:
1. A covenant, promise, agreement or understanding in, or in connection with or collateral to a contract or agreement relative to the construction, alteration, repair or maintenance of a building, structure, appurtenances and appliances including moving, demolition and excavating connected therewith, purporting to indemnify or hold harmless the promisee against liability for damage arising out of bodily injury to persons or damage to property contributed to, caused by or resulting from the negligence of the promisee, his agents or employees, or indemnitee, whether such negligence be in whole or in part, is against public policy and is void and unenforceable; provided that this section shall not affect the validity of any insurance contract, workers' compensation agreement or other agreement issued by an admitted insurer; provided further, that a provision in a construction contract that requires the purchase of additional insured coverage, or any coverage endorsement, or provision within an insurance policy providing additional insured coverage, is void and unenforceable to the extent that it requires coverage, the scope of which is prohibited under this subdivision. This subdivision shall not preclude a promisee requiring indemnification for damages arising out of bodily injury to persons or damage to property caused by or resulting from the negligence of a party other than the promisee, whether or not the promisor is partially negligent.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00258-01-7
A. 5329 2
§ 2. This act shall take effect on the thirtieth day after it shall have become a law and shall apply only to any covenants, promises, agreements or understandings in, or in connection with or collateral to a contract or agreement entered into on or after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.