HB 1541 — An Act amending the act of July 9, 1970 (P.L.484, No.164), entitled "An act relating to indemnification agreements between architects, engineers or surveyors and owners, contractors, subcontractors or suppliers and indemnification agreements relating to snow removal or ice control services," providing for void and unenforceable provisions or terms in construction contracts; and making editorial changes.

PRINTER'S NO.     1812

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1541
                                               Session of
                                                 2025

     INTRODUCED BY HOHENSTEIN, M. BROWN, HILL-EVANS, SANCHEZ,
        WEBSTER, OLSOMMER, GALLAGHER, GUENST, KOZAK, WARREN AND
        OTTEN, JUNE 3, 2025

     REFERRED TO COMMITTEE ON JUDICIARY, JUNE 3, 2025


                                    AN ACT
 1   Amending the act of July 9, 1970 (P.L.484, No.164), entitled "An
 2      act relating to indemnification agreements between
 3      architects, engineers or surveyors and owners, contractors,
 4      subcontractors or suppliers and indemnification agreements
 5      relating to snow removal or ice control services," providing
 6      for void and unenforceable provisions or terms in
 7      construction contracts and for insurance coverage for
 8      additional insureds; and making editorial changes.
 9      The General Assembly of the Commonwealth of Pennsylvania
10   hereby enacts as follows:
11      Section 1.    The title of the act of July 9, 1970 (P.L.484,
12   No.164), entitled "An act relating to indemnification agreements
13   between architects, engineers or surveyors and owners,
14   contractors, subcontractors or suppliers and indemnification
15   agreements relating to snow removal or ice control services," is
16   amended to read:
17                                  AN ACT
18   Relating to indemnification agreements between architects,
19      engineers or surveyors and owners, contractors,
20      subcontractors or suppliers [and], indemnification agreements
 1      relating to snow removal or ice control services[.] and
 2      indemnification agreements relating to construction
 3      contracts.
 4      Section 2.    The act is amended by adding sections to read:
 5      Section 1.2.    The following apply to provisions or terms in a
 6   construction contract which are void and unenforceable:
 7      (1)    A provision or term in a construction contract in which
 8   a party shall be indemnified, held harmless or insured for
 9   damages, claims, losses or expenses arising out of bodily injury
10   to persons, damage to property or economic damage caused by or
11   resulting from the party's negligence, in whole or in part,
12   shall be void as against public policy and unenforceable.
13      (2)    As used in this section:
14      (i)    The term "construction contract" means a covenant,
15   agreement or understanding in, or in connection with, a contract
16   or agreement made and entered into by a party relative to the
17   design, construction, reconstruction, alteration, repair,
18   maintenance, demolition, servicing or security of a building,
19   structure, highway, railroad, appurtenance, land development or
20   appliance.
21      (ii)    The term "party" means an owner, contractor,
22   subcontractor, supplier, architect, engineer or land surveyor,
23   or an agent or employe of an owner, contractor, subcontractor,
24   supplier, architect, engineer or land surveyor.
25      Section 1.3.    The following apply to insurance coverage for
26   an additional insured:
27      (1)    If a construction contract requires insurance coverage
28   to be provided to an additional insured and the additional
29   insured is added to the relevant general liability insurance
30   policy prior to any loss involving the additional insured, the

20250HB1541PN1812                   - 2 -
 1   insurance coverage afforded to the additional insured shall not
 2   be broader than that which is required by the construction
 3   contract to provide for the additional insured.
 4      (2)    The insurance coverage afforded to an additional insured
 5   in a construction contract shall only apply to the extent
 6   permitted by law.
 7      (3)    As used in this section:
 8      (i)    The term "additional insured" means an individual or
 9   entity that is added to a general liability insurance policy to
10   extend coverage beyond the named insured to the individual or
11   entity.
12      (ii)    The term "construction contract" means as defined in
13   section 1.2(2)(i).
14      Section 3.    This act shall take effect in 60 days.




20250HB1541PN1812                   - 3 -