Construction Broad-Form Indemnity & GC Negligence Defense Playbook
General Contractor subcontracts routinely include "Broad-Form" or "Intermediate-Form" indemnification clauses requiring the Subcontractor to defend and indemnify the GC and Owner for ANY injury or property damage on the jobsite "caused in whole or in part" by the Subcontractor—meaning if the GC’s own superintendent leaves an unguarded floor opening (90% GC fault) and your worker trips (10% fault), you and your CGL insurance policy pay 100% of the GC’s legal defense and multi-million-dollar judgment.
Electrical Subcontractor Hit With $340,000 Settlement & Insurance Surcharge After GC’s Unsecured Scaffolding Collapsed
An electrical subcontractor signed an intermediate-form indemnity clause covering any claim "arising out of Subcontractor’s presence on the Project." When an electrician was injured by scaffolding erected improperly by the GC, the GC tendered its entire legal defense to the subcontractor—triggering a $340,000 payout and spiking the subcontractor’s Experience Modification Rate (EMR) above 1.25 (disqualifying them from public bids).
EndorseIQ™ replaces broad/intermediate-form indemnity with strict Comparative Fault language aligned with state Construction Anti-Indemnity Acts (TX Ins. Code Ch. 151, CA Civ. Code § 2782, NY GOL § 5-322.1, FL Stat. § 725.06).
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Fixing one clause alone often fails when a buried definition, exhibit, or survival clause elsewhere in your Construction GL & Subcontractor neutralizes your protection. Drop your PDF or Word (.docx) below for an instant, 100% anonymous cross-section audit.
“Subcontractor’s defense and indemnification obligations under this Agreement shall apply solely to the proportionate extent that a claim, bodily injury, or property damage is proximately caused by the negligent acts, omissions, or willful misconduct of Subcontractor or its sub-tier subcontractors ("Comparative Fault Indemnity"). In no event shall Subcontractor be obligated to defend or indemnify
What to Say to the GL Carrier & Upstream GC / Owner Requirements
"Under state Construction Anti-Indemnity statutes and our commercial general liability (CGL) carrier underwriting rules, we cannot insure or indemnify the General Contractor for the GC’s own percentage of negligence. We have modified Section [X] to standard comparative/proportionate fault indemnity."
Why they drafted it this way: GCs want to push 100% of jobsite premises liability onto trade subcontractors’ commercial general liability (CGL) policies so the GC’s own loss runs and insurance premiums stay untouched.
Mandatory Audit Checklist Points
- Restrict indemnification strictly to "the proportionate extent caused by the negligent acts or omissions of Subcontractor" (Comparative Fault)
- Explicitly exclude any obligation to defend or indemnify the GC or Owner for their own active, sole, or concurrent negligence
- Tie Additional Insured (CG 20 10 / CG 20 37) coverage strictly to ongoing/completed operations proximately caused by Subcontractor’s fault
- Cap property/economic indemnity (outside insured bodily injury) at available CGL insurance proceeds
Paste Your Construction Broad-Form Indemnity & Anti-Indemnity Statute Clause Section or Upload Your Full Construction GL & Subcontractor (.pdf / .docx)
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EndorseIQ™ Policy & Binder Scanner
ACTIVE ENGINE: ENDORSEIQ™ (MULTI-HOP ISO & COVERAGE GRAPH)Frequently Asked Questions
Why does my Additional Insured endorsement need to match the narrowed Indemnity clause?
If you narrow the Indemnity paragraph to proportionate fault, but leave a blanket requirement to provide an unmodified broad-form Additional Insured endorsement, the GC’s lawyer will simply bypass the indemnity clause and tender their negligence claim directly to your CGL insurance policy as an Additional Insured!
How do I redline Construction Broad-Form Indemnity & Anti-Indemnity Statute Clause traps in my Construction GL & Subcontractor anonymously without creating an account?
Upload your Construction GL & Subcontractor PDF or Word (.docx) draft to ExclusionRadar.com to run the "Construction Broad-Form Indemnity & GC Negligence Defense Playbook" defense cartridge 100% anonymously—with zero account registration, zero email login, and stateless in-memory processing. EndorseIQ™ flags Construction Broad-Form Indemnity & Anti-Indemnity Statute Clause exposure (typically $150,000 – $1,000,000+ in Uninsured Jobsite Injury & GC Negligence Liability; documented unredlined loss: $340,000 in defense costs, deductible payout & 3-year EMR insurance spike), checks for cross-section overrides, and exports a ready-to-send Microsoft Word (.docx) Track-Changes file.
More Construction GL & Subcontractor Redline Playbooks
View All Construction GL & Subcontractor PlaybooksConstruction Unconditional Lien Waiver & Change Order Forfeiture Playbook
General Contractors frequently bury two fatal administrative traps inside commercial subcontracts: (1) requiring the Subcontractor to sign an "Unconditional Partial/Final Lien Waiver" as part of the monthly draw submission BEFORE the wire transfer actually hits your bank account; and (2) stating that any extra work directed in the field by the GC’s superintendent is 100% forfeited unless a signed written Change Order is executed before the work is performed (or within 48 hours).
Construction Liquidated Delay Damages & 10% Retainage Playbook
When an early-stage trade (like excavation, steel, or rough-in plumbing) finishes its scope in Month 4 of an 18-month build, two traps threaten its profit margin: (1) 10% Retainage is held until 60 days after the ENTIRE building is finished 14 months later; and (2) the GC flows down the Owner’s $2,500–$5,000/day Liquidated Delay Damages with zero cap while enforcing a "No Damage for Delay" clause if the GC delays your crew’s site access.
ISO CG 20 10 & CG 20 37 Additional Insured Completed Operations
Over 75% of construction defect and bodily injury lawsuits occur AFTER the project is finished ("Completed Operations"). Yet brokers and subcontractors routinely deliver Certificates of Insurance (COIs) carrying only ISO CG 20 10 (Ongoing Operations) or ISO CG 20 33 (Automatic Additional Insured — Direct Written Contract Required), while omitting ISO CG 20 37 (Completed Operations). Worse, upstream MSAs and design-build contracts combine strict 12/19 ISO endorsement demands with overbroad "Work Made for Hire" IP seizures.
ISO CG 22 94 Subcontractor Work & Action-Over Exclusion Audit
Surplus-lines and low-cost construction GL binders frequently attach three coverage-destroying endorsements: (1) ISO CG 22 94 or CG 22 95, which deletes the critical "Subcontractor Exception" to the "Your Work" exclusion (meaning if a subcontractor you hired causes a $400,000 water or structural defect, your GL policy pays $0); (2) ISO CG 21 39 (Contractual Liability Limitation), which deletes coverage for indemnity obligations in your construction contracts; and (3) an "Action-Over / Employee of Independent Contractor" exclusion.