The bill S. 395 aims to amend Section 32-2-10 of the South Carolina Code of Laws, specifically addressing hold harmless clauses in construction and design professional agreements. It establishes that certain indemnification provisions within these agreements are unenforceable if they attempt to indemnify a promisee against liability for damages resulting from their own sole negligence. The bill also introduces definitions for key terms related to construction agreements, such as "construction agreement," "design professional," and "proximate cause," among others.

Additionally, the bill clarifies that provisions requiring a promisor to indemnify or hold harmless a promisee or their derivative parties against losses are against public policy unless the promisor's fault is a proximate cause of the loss. It also specifies that any requirement for a design professional to defend a promisee against claims related to professional negligence is unenforceable. The bill explicitly states that it does not affect insurance contracts or workers' compensation agreements and outlines exceptions for certain entities, including electric utilities and common carriers. The act will take effect upon approval by the Governor.

Statutes affected:
02/26/2025: 32-2-10
Latest Version: 32-2-10