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 defines key terms related to construction agreements, such as "construction agreement," "design professional," and "proximate cause," to clarify the scope and application of the law.

Additionally, the bill specifies that provisions requiring a promisor to indemnify or hold harmless a promisee or their derivative parties against losses or damages are against public policy unless the promisor's fault is a proximate cause of the loss. It also prohibits clauses that require a design professional to defend a promisee against claims arising from professional negligence. The bill does not affect insurance contracts, workers' compensation agreements, or certain entities like 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