Indemnity provisions play an important role in managing the risks associated with construction contracting. Such clauses require one party to take on the obligation to cover the loss or damage that has been or might be incurred by another party. As many readers have undoubtedly experienced, there is a tendency for a party with superior bargaining power to seek the broadest possible indemnification from lower-tiered contractors. However, since the public benefits from limits on overreaching indemnity clauses, many states have enacted anti-indemnity statutes that void indemnity agreements if they go too far, for example, by requiring party A to indemnify party B for losses caused solely by the negligence of party B.
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