Indiana enacts anti-indemnification law

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Indiana recently enacted an anti-indemnification law largely based on the American Trucking Associations’ model anti-indemnification legislation and supported by the Indiana Motor Truck Association. The law applies to contracts entered into or renewed after June 30.

The law generally makes indemnity provisions in motor carrier transportation contracts, which require the motor carrier to indemnify or hold harmless another for that person’s negligence or intentional misconduct, unenforceable. ATA says this helps to restore a more appropriate division of responsibility for one’s actions pursuant to a motor carrier transportation contract.

Indiana joins South Carolina and North Carolina among states that recently have enacted such anti-indemnification legislation.