Texas-Specific · Insurance Term
Texas Anti-Indemnity Act (Texas Insurance Code Chapter 151)
Definition
The Texas Anti-Indemnity Act (Insurance Code Chapter 151) voids most construction contract clauses that make a contractor indemnify or defend an owner for the owner's own negligence. It also limits additional insured coverage to the same scope. It affects developers and owners who hire contractors.
In Plain English
Construction contracts often shift risk downward: the owner asks the general contractor to indemnify it, and the contractor asks the same of subcontractors. Section 151.102 makes such promises unenforceable to the extent they cover the protected party's own negligence or fault.
Section 151.104 applies the same limit to additional insured requirements. An owner generally cannot get additional insured coverage for its own negligence through a construction contract if the contract could not require indemnity for it.
There are exceptions. They include certain injury claims by the contractor's own employees, single-family residential work, and certain provisions in consolidated insurance programs like a Wrap-Up Program. An attorney should review your construction contracts.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a developer's contract requires a roofer to indemnify the developer for any injury on site, even if caused solely by the developer. Under Chapter 151, that part of the clause is generally void, so the developer needs its own liability coverage for its own negligence.
Why It Matters for Texas Property Owners
This is Texas law. It means a developer cannot rely on contractors' policies to cover its own negligence on most Texas construction projects. Your own general liability coverage stays essential.
What to Watch For
- Have an attorney review indemnity and additional insured clauses in your construction contracts.
- Do not drop your own liability coverage on the assumption that contractors' policies cover you.
- Ask whether a wrap-up program would change how insurance works on your project.
- Check whether the project falls under any statutory exclusion.
Sources
Last updated October 14, 2026 · Primesure editorial team · How We Write