PIC Group, Inc. v. LandCoast Insulation, Inc.
718 F. Supp. 2d 795 | District Court, S.D. Mississippi | 2010
What This Case Means for Subcontractors
PIC Group hired LandCoast Insulation as a subcontractor to install scaffolding at a power plant in Mississippi. The scaffolding collapsed, injuring six workers and killing one. The court ruled that broad indemnification clauses requiring a subcontractor to cover the general contractor's own negligence are void under Georgia law, but only if the insurance doesn't fully shift the risk to an insurer. This means subcontractors cannot be forced to indemnify contractors for the contractor's own wrongdoing unless insurance covers it.
Key Takeaways
- •Broad indemnification clauses that use 'all claims' language are unenforceable under Georgia law unless insurance fully covers the risk—review your contract's insurance requirements carefully
- •Indemnification for your own breach of contract (subsection ii) is still enforceable, so you remain liable for your own work failures
- •Always check which state's law governs your subcontract; Georgia law voids overly broad indemnity clauses, but other states may differ
Subsection (ii) of the indemnity clause does not violate Georgia public policy and is enforceable.
Frequently Asked Question
Can a general contractor force me to indemnify them for their own negligence?
Under Georgia law, no—broad indemnification clauses that cover the contractor's own negligence are void as against public policy. However, you can still be required to indemnify for your own breach of contract. Always verify which state's law applies to your subcontract, as other states may enforce broader indemnity clauses.
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