State House Passes Legislation That Could Impact Snowplowing Contracts

June 22, 2016

Do you have a commercial snowplowing contract? If so, legislation passed by the Michigan House in the final days of the spring legislative session could impact how those contracts can be written moving forward.

House Bill 5230 would prevent companies that hire private firms to handle their snowplowing and de-icing services from including indemnification clauses in their contracts.  These indemnity provisions are quite common and intended to protect businesses from liability for snow or ice-related incidents (e.g., slip and fall accidents) when a third-party contractor is responsible for weather-related maintenance of the parking lot and/or sidewalks. 

Several Chamber members have expressed concerns about the potential liability exposure and insurance costs associated with this legislation. Others do not believe legislative interference in private contracts is warranted. 

Please contact Wendy Block at wblock@michamber.com if you share these concerns or would like further information.