Bill Text: NY A04259 | 2015-2016 | General Assembly | Introduced

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

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2016-01-06 - referred to judiciary [A04259 Detail]

Download: New_York-2015-A04259-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
           S. 2925                                                  A. 4259
                              2015-2016 Regular Sessions
                             S E N A T E - A S S E M B L Y
                                   January 30, 2015
                                      ___________
       IN  SENATE  --  Introduced by Sen. DeFRANCISCO -- read twice and ordered
         printed, and when printed to be committed to the Committee on  Judici-
         ary
       IN  ASSEMBLY -- Introduced by M. of A. CUSICK, ABINANTI -- 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:
    1    Section 1. Subdivision 1 of section 5-322.1 of the general obligations
    2  law, as amended by chapter 67 of the laws of 1993, is amended to read as
    3  follows:
    4    1.   A  covenant,  promise,  agreement  or  understanding  in,  or  in
    5  connection with or collateral to a contract or agreement relative to the
    6  construction, alteration, repair or maintenance of  a  building,  struc-
    7  ture,  appurtenances  and  appliances  including  moving, demolition and
    8  excavating connected therewith, purporting to indemnify or hold harmless
    9  the promisee against liability for damage arising out of  bodily  injury
   10  to  persons or damage to property contributed to, caused by or resulting
   11  from the negligence of the promisee, his agents or employees, or  indem-
   12  nitee, whether such negligence be in whole or in part, is against public
   13  policy  and  is void and unenforceable; provided that this section shall
   14  not affect the validity of any insurance contract, workers' compensation
   15  agreement or other agreement issued by  an  admitted  insurer;  PROVIDED
   16  FURTHER,  THAT  A PROVISION IN A CONSTRUCTION CONTRACT THAT REQUIRES THE
   17  PURCHASE OF ADDITIONAL INSURED COVERAGE, OR ANY COVERAGE ENDORSEMENT, OR
   18  PROVISION WITHIN AN INSURANCE POLICY PROVIDING ADDITIONAL INSURED COVER-
   19  AGE, IS VOID AND UNENFORCEABLE TO THE EXTENT THAT IT REQUIRES  COVERAGE,
   20  THE  SCOPE  OF WHICH IS PROHIBITED UNDER THIS SUBDIVISION. This subdivi-
   21  sion shall not preclude a promisee requiring indemnification for damages
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD07513-01-5
       S. 2925                             2                            A. 4259
    1  arising out of bodily injury to persons or damage to property caused  by
    2  or  resulting  from  the  negligence of a party other than the promisee,
    3  whether or not the promisor is partially negligent.
    4    S  2.  This  act shall take effect on the thirtieth day after it shall
    5  have become a law and shall  apply  only  to  any  covenants,  promises,
    6  agreements  or understandings in, or in connection with or collateral to
    7  a contract or agreement entered into on or after such date.