Senate Bill Prohibits Additional Insureds
The Kansas Senate has passed Senate Bill 379, which prohibits additional
insured clauses in a subcontractor's contract.
The bill amends K.S.A. 2006 Supp. 16-121 to read:
"A provision in a construction contract which requires a party
to provide liability coverage to another party, as an additional
insured, for such other party's own negligence or intentional
acts or omissions is against public policy and is void and unenforceable."
"It's very important for subcontractors to only be responsible
for the things they are responsible for," says Bill Miller, government
relations chairperson for the American Subcontractors Association's
Kansas chapter. "The additional insureds provision makes the subcontractor
responsible for the negligence of [others]. We think our insurance
rates are high enough we should only pay for the things we do."
Miller summarizes, "If we break it we fix it, if you break it,
you fix it."
The Kansas legislation was approved 34-4 on January 30, and must
now pass the Kansas House in order to become law.
Miller notes that a similar bill was introduced in Missouri last
week, and five out of 50 states have already passed similar litigation
in the last five years.
HERE to read about the additional insured clause required by
the American Institute of Architects' new contract documents.
For more about these documents, and the additional insured clause,
look for the February issue of USGlass magazine.
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