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📜 '''Anti-indemnity statute''' is a state-level law — found predominantly in the United States — that restricts or voids contractual provisions requiring one party to [[Definition:Indemnification | indemnify]] another for losses caused by the indemnitee's own [[Definition:Negligence | negligence]]. These statutes directly shape how [[Definition:Insurance | insurance]] obligations are allocated in construction, energy, and other industries where contracts routinely attempt to shift [[Definition:Liability | liability]] through broad indemnity clauses. For [[Definition:Insurer | insurers]] and [[Definition:Risk manager | risk managers]], understanding the anti-indemnity landscape is essential because it determines which contractual risk transfers are legally enforceable and, consequently, which risks must be retained or insured separately.

🔧 Most anti-indemnity statutes fall into one of three categories based on the breadth of indemnity provisions they prohibit. "Type I" or "broad form" statutes void any agreement that requires a party to indemnify another for the indemnitee's sole negligence. "Type II" or "intermediate form" statutes go further, also invalidating clauses that shift liability for the indemnitee's partial negligence. "Type III" statutes are the most restrictive, generally permitting indemnification only to the extent of the indemnitor's own fault. The specific type in force varies by state — Texas, New York, California, and Louisiana each take notably different approaches — and the statutes may apply only to certain industries, most commonly construction. When drafting [[Definition:Additional insured | additional insured]] endorsements, [[Definition:Commercial general liability (CGL) | CGL]] policies, or [[Definition:Owner-controlled insurance program (OCIP) | wrap-up programs]], underwriters and brokers must map each state's anti-indemnity rules to ensure the insurance program aligns with enforceable contractual obligations rather than provisions a court might strike down.

⚠️ Ignoring these statutes can produce costly gaps. If an indemnity clause is voided, the party that expected to be held harmless suddenly faces uninsured exposure, and the [[Definition:Insurance carrier | carrier]] that issued coverage based on the contractual risk allocation may find its [[Definition:Subrogation | subrogation]] rights impaired. Disputes over anti-indemnity applicability generate substantial litigation, particularly in large construction and infrastructure projects with complex chains of [[Definition:Subcontractor | subcontractors]]. While the concept is rooted in U.S. law, analogous principles exist in other common-law jurisdictions — for instance, the UK's Unfair Contract Terms Act places limits on certain liability exclusions — making the underlying tension between contractual freedom and public policy a globally resonant theme in [[Definition:Commercial insurance | commercial insurance]] practice.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Indemnification]]
* [[Definition:Hold harmless agreement]]
* [[Definition:Additional insured]]
* [[Definition:Commercial general liability (CGL)]]
* [[Definition:Contractual liability]]
* [[Definition:Subrogation]]
{{Div col end}}

Definition:Anti-indemnity statute - Revision history

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