Important Legislative Change - Design Professional Indemnities in California

California Governor Jerry Brown recently signed into law Senate Bill 496 ("SB-496") representing a major step forward in reducing the uninsurable burden of indemnity provisions and the duty to defend for most public and private contracts signed by design professionals in California. Dealey Renton (DRA) was proud to support ACEC California as they led lobbying efforts over the past few years to enact this bill.

Historically, indemnity provisions in design professional agreements have created insurability issues as professional liability insurers are unwilling to provide coverage for the duty to defend or liabilities not attributable to negligence. For contracts entered into, on, or after January 1, 2018, SB-496 amends California Civil Code 2782.8 and contains three key points: Read more....