Before taking a look at anti-indemnity acts, it is essential to understand what these agreements are and what they mean. These agreements are typically made between contractors and subcontractors or owners and operators in a variety of industries. These agreements essentially transfer the liability for injuries and accidents, as well as workers’ compensation to the owner, operator, subcontractor, or contractor.
To combat this liability, many states have enacted at least some type of anti-indemnity statute or act. These are made to protect smaller operators from full responsibility even if the operator or owner is determined to be fully at fault.
Types of Indemnity Agreements
To understand these anti-indemnity statutes and acts, you need to understand the different types of agreements. Not all of them are allowed or valid in all states. That is why if you have been injured in an accident, you need to contact an attorney to find out which ones apply in your area.
- Broad Indemnity Agreements – These agreements make the contractor or subcontractor 100% at-fault regardless of how much they contributed to the accident.
- Limited Indemnity Agreements – These agreements place the contractor or subcontractor at fault only if they were 100% negligent for the accident. If the operator or owner was partially at fault, they may also be held responsible.
- Intermediate Indemnity Agreements – These agreements only place liability on the contractor or subcontractor for the portion of negligence for which they are responsible. There are only a few exceptions to this.
Oilfield Anti-Indemnity Acts
In additional to general anti-indemnity agreements, Texas and a few other states have passed anti-indemnity acts specific to oilfields. These are in place to prohibit transferring full responsibility to a contractor or subcontractor.
In 1973, Texas passed the Oilfield Anti-Indemnity Act that pertains to wells for gas, oil, water, or mines for a mineral. The purpose is to indemnify a person against liability that was caused by their concurrent or sole negligence, or arises from a personal injury, property damage, or death. The TOAIA allows limited indemnity agreements, and when a unilateral agreement is reached, $500,000 is the maximum coverage allowed for insurance.
In order to consider a limited agreement valid, there must be a specific provision in the agreement that provides fair notice of the requirements. It must clearly define the intent of the contractor or subcontractor to be responsible for the agreed-upon insurance coverage.
The TOAIA is one of only four such agreements that allows for these limited provisions. The other three states with anti-indemnity acts do not allow any type of agreement that would circumvent the anti-indemnity acts.
Contact an Experienced Maritime Law Attorney TodayIf you have questions about Texas’ anti-indemnity acts and how it could impact your personal injury, or if you have been injured in an oil rig accident, contact the attorneys at Kolodny Law Firm today. We can review your accident, advise you of your legal rights and options, and help you get the compensation that you are entitled to. Maritime laws are confusing and complex, and not something you should try to handle on your own. Contact us today to schedule a consultation.