Wednesday, March 23, 2011

Construction Indemnity for Third-Party Negligence: Current New York Law

Reviewed September 7, 2026.

The original post discussed a proposal to amend New York's construction anti-indemnity statute. A legislative proposal is not an enacted rule.

The current General Obligations Law § 5-322.1(1) generally prohibits covered construction agreements from shifting liability for the promisee's own negligence to the promisor, with the statute's stated scope and insurance exception. It also expressly permits indemnification for damage caused by another party's negligence, whether or not the promisor is partially negligent.

Review the clause and the facts

Do not assume that an agreement is void simply because a third party contributed to the loss. Identify who seeks indemnity, whose conduct caused the damage, the contractual trigger and any language limiting recovery to the extent permitted by law.

Keep the duty to procure insurance separate from the duty to indemnify. The enforceability of one does not automatically resolve the other. Review these provisions before signing and again when a claim arises, together with the actual policies and endorsements.

Kushnick Pallaci PLLC assists clients throughout New York with construction indemnity and insurance contract review. Contact 631-752-7100 or vtp@kushnicklaw.com.

Attorney Advertising. General information, not legal advice.

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