Last week in angst I posted the idea that the Acord 25 should be ended. At the end of the week I read a construction contract that requested the 2010 11-85 or equivalent. Equivalent of the 2010 11-85 is an interesting request - NOT. The 2010 11-85 gave coverage for sole negligence and that caused a lot of problems. My home State of Pennsylvania has no anti-indemnity statute and goes by case law. In 2020 there was a State Rep that tried to bring forward legislation but it was tabled.
The equivalent exists in the mind of the contract writer but we can cobble together the current 2010, the 2037 and 2404 that will come close but if they want matching the equivalent for sole negligence, well if need be off to court they go to hash it all out.
Soon I will be 100% retired, will have time on my hands and I am going to contact my State department of insurance about this matter. No longer should we the agent / broker be held hostage as the attorney in fact for the bigger dogs that write these contracts. Maybe we can stop the insanity of risk transfer that has gotten to the point that nobody upstream is ever willing to accept at fault.
If the big dogs want to keep this up, do away with the #25, send a copy of the insurance policy, instead of using us as assumed free employees who accept the risk of supplying a #25, let the big dogs have someone on staff to read and determine if the policy satisfies to the contract. If they had to do it, I'm betting we would see change.
Pennsylvania does not have a general anti-indemnity statute for construction contracts, but it does have a statute that prohibits the indemnity of design professionals. Pa. Stat. Ann. tit. 68, § 491.
The equivalent exists in the mind of the contract writer but we can cobble together the current 2010, the 2037 and 2404 that will come close but if they want matching the equivalent for sole negligence, well if need be off to court they go to hash it all out.
Soon I will be 100% retired, will have time on my hands and I am going to contact my State department of insurance about this matter. No longer should we the agent / broker be held hostage as the attorney in fact for the bigger dogs that write these contracts. Maybe we can stop the insanity of risk transfer that has gotten to the point that nobody upstream is ever willing to accept at fault.
If the big dogs want to keep this up, do away with the #25, send a copy of the insurance policy, instead of using us as assumed free employees who accept the risk of supplying a #25, let the big dogs have someone on staff to read and determine if the policy satisfies to the contract. If they had to do it, I'm betting we would see change.
Pennsylvania does not have a general anti-indemnity statute for construction contracts, but it does have a statute that prohibits the indemnity of design professionals. Pa. Stat. Ann. tit. 68, § 491.
