What do anti-indemnification statutes usually declare regarding hold harmless agreements?

Anti-indemnification statutes are enacted in many states to prevent certain types of hold harmless or indemnification agreements from being enforceable, particularly those that shift liability to one party for the negligence or fault of another. The correct answer highlights that hold harmless agreements may be rendered unenforceable if they conflict with established state laws, which often aim to protect parties from being unfairly burdened or exposed to liability beyond a reasonable scope.

These statutes are rooted in public policy considerations, as they often pertain to construction contracts or agreements involving parties of significantly unequal bargaining power, such as a contractor and a subcontractor. The intention is to ensure fairness and adequate protection for individuals or entities that might be compelled to accept liability for someone else's actions.

In jurisdictions with strict anti-indemnification laws, certain provisions that would otherwise transfer risk might not stand up in court if they violate these laws. This provides critical context for parties engaging in such agreements, emphasizing the need for compliance with applicable legal standards.