US-New York

Can an indemnification clause in a construction contract be void in NY?

Void if neglige
General rule
CPLR 4545(c)
Collateral source rule
Gen. Oblig. Law
Indemnity statute
100% void
Enforceability
The Short Answer

Yes, indemnification clauses in construction contracts are void in New York if they attempt to indemnify a party for its own negligence — except for certain limited exceptions like design professionals’ liability under specific conditions.

What the Law Says

New York law broadly prohibits construction contracts from including indemnification clauses that cover a party’s own negligence. This rule is codified in General Obligations Law § 5-322.1, which declares such provisions void as against public policy.

Under New York law, any clause in a construction contract that attempts to indemnify a party for damages arising out of their own negligence — whether sole, concurrent, or partial — is unenforceable and void. This applies to agreements between owners, contractors, subcontractors, and suppliers.

The law makes a narrow exception: design professionals (e.g., architects and engineers) may be required to indemnify owners for damages caused by their negligence — but only if the contract explicitly states that the indemnity covers negligence, and only to the extent of their professional liability insurance coverage.

This statutory prohibition overrides any contractual language to the contrary and cannot be waived by the parties.

Statutory Text

Any clause in a contract… which purports to indemnify or hold harmless a party… from liability for damage arising out of bodily injury… or property damage… which arises out of the negligence of such party… is against public policy and is void.

Gen. Oblig. Law § 5-322.1(1) — Indemnification clauses in construction contracts

What Courts Have Said

New York courts have consistently enforced § 5-322.1 to strike down broad indemnity clauses, emphasizing that public policy bars shifting liability for one’s own negligence.

Harrington v. D.H. Griffin Wrecking Co., 97 A.D.3d 1068 (3d Dept. 2012)
Appellate Division, Third Department · 2012

Court held that an indemnity clause requiring a subcontractor to indemnify the general contractor for all claims — including those arising from the general contractor’s own negligence — was void under Gen. Oblig. Law § 5-322.1.

Matter of Allstate Ins. Co. v. Dime Sav. Bank, 96 N.Y.2d 75 (2001)
New York Court of Appeals · 2001

While not a construction case, this decision reinforced that indemnity provisions violating public policy — especially those insulating a party from consequences of its own negligence — are unenforceable in New York.

What to Do

1

Review your construction contract for any indemnity clause that references 'negligence,' 'liability,' or 'all claims' without limiting language.

2

Delete or revise clauses that purport to cover your own negligence — they are void and unenforceable in NY.

3

If you’re a design professional, ensure any indemnity provision explicitly references negligence and ties coverage to your professional liability insurance limits.

4

Consult a New York construction attorney before signing or enforcing an indemnity clause.

Sources

Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.