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INDEMNITY INSURANCE RESTRICTIONS
Closing the Loophole: The Increasing
Restrictions on Indemnity Insurance
By J. Andrew Howard and Jessica L. Sharron
The hallmark of any dispute is the all-too-familiar “pointing of the finger” as parties look to others
on which to shift the blame for unwanted, usually negative consequences. This is particularly true
in construction disputes, which nearly always involve a number of interested parties, including
project owners, construction managers, general contractors, subcontractors and suppliers, all of
whom must work together to get a project built. When problems arise, defects are discovered or
claims are filed, these parties often look to each other to shift or altogether avoid liability.
Indeed, no party is more likely to “point the finger” than a project’s owner, who in many instances
does not design the project nor usually perform any of the construction work itself. Similarly, gen-
eral contractors and construction managers, who usually hire trade contractors to execute the vast
