In the near future I will be introducing the attached legislation to prohibit indemnification clauses within contracts in our Commonwealth.

An indemnification clause requires one party to assume liability for damages, claims, losses, or expenses arising from bodily injury, property damage, or economic loss caused by another party’s negligence. While these clauses have become commonplace in many types of contracts, they are often imposed in situations where there is a significant imbalance in bargaining power. Individuals and businesses frequently have little choice but to accept these provisions or forgo valuable opportunities altogether.

As a result, indemnification clauses can shift liability to parties that have no control over the risks involved. In some cases, a party may be held responsible for the negligent acts of another, despite having no involvement in the incident. This creates unfair and disproportionate exposure to liability.

Contracts function most effectively when risk is allocated to the party best positioned to prevent, manage, and insure against that risk. This legislation promotes fairness by ensuring that liability is assigned in a reasonable and equitable manner.

Please consider co-sponsoring this important legislation to help establish a more balanced and responsible approach to contractual liability.