FEDERALDistrict Court, S.D. Mississippi
2010

PIC Group, Inc. v. LandCoast Insulation, Inc.

718 F. Supp. 2d 795District Court, S.D. Mississippi • Decided 2010Modified

HOLDING

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 FINDINGS

Broad Indemnification

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

Insurance Requirements

Indemnification for your own breach of contract (subsection ii) is still enforceable, so you remain liable for your own work failures

Flow-Down

Always check which state's law governs your subcontract; Georgia law voids overly broad indemnity clauses, but other states may differ

FULL COURT OPINION