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Assembly Bill A5329

2017-2018 Legislative Session

Provides that provisions in construction contracts with respect to requirements for certain additional insurance coverage are void and unenforceable

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Archive: Last Bill Status - In Assembly Committee

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2017-A5329 (ACTIVE) - Details

See Senate Version of this Bill:
S5239
Current Committee:
Assembly Judiciary
Law Section:
General Obligations Law
Laws Affected:
Amd §5-322.1, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2013-2014: A8747, S6606
2015-2016: A4259, S2925
2019-2020: A3551, S2393
2021-2022: A5768, S1498

2017-A5329 (ACTIVE) - Summary

Provides that provisions in construction contracts with respect to requirements for certain additional insurance coverage are void and unenforceable.

2017-A5329 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5329
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             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 invalid-
   ity of additional insurance provisions

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, 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, struc-
 ture, 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 indem-
 nitee, 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 COVER-
 AGE,  IS VOID AND UNENFORCEABLE TO THE EXTENT THAT IT REQUIRES COVERAGE,
 THE SCOPE OF WHICH IS PROHIBITED UNDER THIS SUBDIVISION.  This  subdivi-
 sion 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.

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