SENATE AMENDMENT
Bill No. SB 2284
Amendment No. 1 Barcode 872716
CHAMBER ACTION
Senate House
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11 The Committee on Banking and Insurance recommended the
12 following amendment:
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14 Senate Amendment
15 Delete everything after the enacting clause
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17 and insert:
18 Section 1. Section 725.06, Florida Statutes, is
19 amended to read:
20 725.06 Construction contracts; limitation on
21 indemnification; agreements to insure .--
22 (1) Except as otherwise provided in paragraphs (a),
23 (b), and (c), any portion of any agreement or contract for or
24 in connection with, or any guarantee of or in connection with,
25 any construction, alteration, repair, or demolition of a
26 building, structure, appurtenance, or appliance, including
27 moving and excavating associated therewith, between an owner
28 of real property and an architect, engineer, general
29 contractor, subcontractor, sub-subcontractor, or materialman
30 or any combination thereof wherein any party referred to
31 herein promises to have someone named an additional insured
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SENATE AMENDMENT
Bill No. SB 2284
Amendment No. 1 Barcode 872716
1 under his insurance policy, indemnify, defend or hold harmless
2 the other party to the agreement, contract, another person or
3 party guarantee for liability or for damages to persons or
4 property caused in whole or in part by any act, omission, or
5 default of the person or party indemnitee arising from the
6 contract or its performance, being indemnified shall be void
7 and unenforceable as against public policy. However, this
8 provision shall not be construed to place limits on indemnity
9 agreements that are only between a general contractor and the
10 owner of real property as long as unless the contract contains
11 a monetary limitation on the extent of the indemnification
12 that bears a reasonable commercial relationship to the
13 contract and is part of the project specifications or bid
14 documents, if any. Notwithstanding the foregoing, the monetary
15 limitation on the extent of the indemnification provided to
16 the owner of real property by any party in privity of contract
17 with such owner shall not be less than $1 million per
18 occurrence, unless otherwise agreed by the parties. However,
19 such indemnification shall not include claims of, or damages
20 resulting from, gross negligence, or willful, wanton or
21 intentional misconduct of the indemnitee or its officers,
22 directors, agents or employees, or for statutory violations or
23 punitive damages except and to the extent the statutory
24 violation or punitive damages are caused by or result from the
25 negligent acts, omissions, or default of the indemnitor or any
26 of the indemnitor's contractors, subcontractors,
27 sub-subcontractors, materialmen, or agents of any tier or
28 their respective employees.
29 (a) Indemnification provisions in any such agreements,
30 contracts, or guarantees may not require that the indemnitor
31 indemnify the indemnitee for damages to persons or property
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SENATE AMENDMENT
Bill No. SB 2284
Amendment No. 1 Barcode 872716
1 caused in whole or in part by any act, omission, or default of
2 a party other than:
3 1.(a) The indemnitor; or
4 2.(b) Any of the indemnitor's contractors,
5 subcontractors, sub-subcontractors, materialmen, or agents of
6 any tier or their respective employees.; or
7 (c) The indemnitee or its officers, directors, agents,
8 or employees. However, such indemnification shall not include
9 claims of, or damages resulting from, gross negligence, or
10 willful, wanton or intentional misconduct of the indemnitee or
11 its officers, directors, agents or employees, or for statutory
12 violation or punitive damages except and to the extent the
13 statutory violation or punitive damages are caused by or
14 result from the acts or omissions of the indemnitor or any of
15 the indemnitor's contractors, subcontractors,
16 sub-subcontractors, materialmen, or agents of any tier or
17 their respective employees.
18 (b)(2) A construction contract for a public agency or
19 in connection with a public agency's project may require a
20 party to that contract to indemnify and hold harmless the
21 other party to the contract, their officers and employees,
22 from liabilities, damages, losses and costs, including, but
23 not limited to, reasonable attorney's fees, to the extent
24 caused by the negligence, recklessness, or intentional
25 wrongful misconduct of the indemnifying party and persons
26 employed or utilized by the indemnifying party in the
27 performance of the construction contract.
28 (c) Any portion of any agreement or contract for or in
29 connection with, or any guarantee of or in connection with,
30 any construction, alteration, repair, or demolition of a
31 building, structure, appurtenance, or appliance, including
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SENATE AMENDMENT
Bill No. SB 2284
Amendment No. 1 Barcode 872716
1 moving and excavating associated therewith, between an entity
2 regulated by the Florida Public Service Commission and an
3 architect, engineer, general contractor, subcontractor,
4 sub-subcontractor, or materialman or any combination thereof
5 wherein any party referred to herein promises to indemnify or
6 hold harmless the other party to the agreement, contract, or
7 guarantee for liability for damages to persons or property
8 caused in whole or in part by any negligent act, omission, or
9 default of the indemnitee arising from the contract or its
10 performance, shall be void and unenforceable unless the
11 contract contains a monetary limitation on the extent of the
12 indemnification that bears a reasonable commercial
13 relationship to the contract and is part of the project
14 specifications or bid documents, if any. Notwithstanding the
15 foregoing, the monetary limitation on the extent of the
16 indemnification provided to the owner of real property by any
17 party in privity of contract with such owner shall not be less
18 than $1 million per occurrence, unless otherwise agreed by the
19 parties. Indemnification provisions in any such agreements,
20 contracts, or guarantees may not require that the indemnitor
21 indemnify the indemnitee for damages to persons or property
22 caused in whole or in part by any act, omission, or default of
23 a party other than:
24 1. The indemnitor;
25 2. Any of the indemnitor's contractors,
26 subcontractors, sub-subcontractors, materialmen, or agents of
27 any tier or their respective employees; or
28 3. The indemnitee or its officers, directors, agents,
29 or employees. However, such indemnification shall not include
30 claims of, or damages resulting from, gross negligence, or
31 willful, wanton or intentional misconduct of the indemnitee or
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SENATE AMENDMENT
Bill No. SB 2284
Amendment No. 1 Barcode 872716
1 its officers, directors, agents or employees, or for statutory
2 violation or punitive damages except and to the extent the
3 statutory violation or punitive damages are caused by or
4 result from the acts or omissions of the indemnitor or any of
5 the indemnitor's contractors, subcontractors,
6 sub-subcontractors, materialmen, or agents of any tier or
7 their respective employees.
8 (2) If, as part of any agreement or contract for or in
9 connection with, or any guarantee of or in connection with,
10 any construction, alteration, repair, or demolition of a
11 building, structure, appurtenance, or appliance, including
12 moving and excavating associated with such activities, between
13 or among an architect, engineer, general contractor,
14 subcontractor, sub-subcontractor, or materialman or any
15 combination of such persons, a policy of insurance extends
16 certain coverage rights to an additional insured for liability
17 arising out of the acts, errors, or omissions of the named
18 insured, such additional insured coverage shall only provide
19 liability protection to the additional insured for the imputed
20 or vicarious liability imposed on the additional insured as a
21 direct consequence of the negligent acts or omissions of the
22 named insured.
23 (3) If a written contract requires a subcontractor,
24 sub-subcontractor or materialman to provide a policy of
25 insurance or a certificate of insurance to a general
26 contractor or subcontractor, extending specific coverage
27 rights to an additional insured:
28 (a) The general contractor or subcontractor may at any
29 point prior to the date the subcontractor, sub-subcontractor
30 or materialman commences work or delivers material to the
31 project, accept or reject the policy as being nonconforming;
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SENATE AMENDMENT
Bill No. SB 2284
Amendment No. 1 Barcode 872716
1 (b) If not rejected, the general contractor or
2 subcontractor shall be deemed to have accepted the policy and;
3 (c) The general contractor or subcontractor shall not
4 use the lack of conforming insurance as a reason to reject
5 work already completed by a subcontractor, sub-subcontractor,
6 or material already supplied by the materialman, or withhold
7 payment to the subcontractor, sub-subcontractor or materialman
8 for work already completed or material already supplied Except
9 as specifically provided in subsection (2), a construction
10 contract for a public agency or in connection with a public
11 agency's project may not require one party to indemnify,
12 defend, or hold harmless the other party, its employees,
13 officers, directors, or agents from any liability, damage,
14 loss, claim, action, or proceeding, and any such contract
15 provision is void as against public policy of this state.
16 (4) This section does not affect any contracts,
17 agreements, or guarantees entered into before the effective
18 date of this section or any renewals thereof.
19 Section 2. This act shall take effect upon becoming a
20 law.
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