It’s never too early to start thinking about snow in Colorado, and companies that provide snow and ice management may find some liability relief in a bill signed by Gov. John Hickenlooper in late May.
The Snow Removal Service Liability Limitation Act (SB 18-062) prohibits hold harmless clauses in contracts between snow removal companies and their customers. The bill applies both to providers and customers, meaning agreements that indemnify a snow and ice management company or a property owner from acts or omissions of the other party are void.
“Unfortunately, this scenario happens all too often in our industry where a property owner insists on contract language that passes on any and all incidents, accidents and injuries related to snow and ice management to the contractor,” Kevin Gilbride, executive director of the Accredited Snow Contractors Association, said in a statement. The bill signed on May 30 is based on ASCA’s model legislation.
In addition to voiding indemnity clauses, contracts may not require either party to hold the other harmless for damages or provide for the other party’s defense in a liability lawsuit. The bill doesn’t apply to contracts with airports and public agencies or utilities. The bill was originally introduced in January and was expected to take effect on Aug. 8. Colorado follows Illinois as the second state to pass such legislation.