Insurance & LiensQuestion 1543 of 1632

A hold-harmless clause where a subcontractor agrees to indemnify the general contractor even for the GC's OWN active negligence is:

a.Limited by the California anti-indemnity construction statutes
b.Enforceable only on residential work, and void on commercial projects
c.Fully enforceable, provided the subcontract states the intent clearly
d.Unnecessary, because an additional insured endorsement does the same

Explanation

Civil Code §2782 voids a construction contract clause purporting to indemnify a party for its own sole negligence or willful misconduct, and §2782.05 further restricts indemnity by subcontractors for the active negligence of the general contractor. (b) inverts the statutes, which reach residential work rather than exempting it. (c) is the pre-statute common-law position, which clear drafting no longer rescues. (d) is a real and important distinction stated as an equivalence — additional insured coverage is subject to policy terms and limits, and does not do the work of an indemnity clause.

Law Reference: Civil Code §2782 / §2782.05

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