New law changes conditions under which certain indemnity agreements can be enforced

Indemnity agreements for design professional service contracts are clarified under a new law that removes three words.

Effective May 23, 2022, it states these types of contracts are permissible only when the obligation to indemnify, hold harmless or defend an indemnitee “is covered by insurance.” Previous law covered someone “is able to be covered by insurance.”

An indemnity agreement is a contract that protects one party of a transaction from the risks or liabilities created by the other party.

Rep. Mike Sundin (DFL-Esko) and Sen. Mark Johnson (R-East Grand Forks) sponsor the law.

HF4181/SF3850*/CH68

SF3850* / HF4181 / CH68