SB 18-062 is being considered by the Colorado Legislature and proposes to impose liability limits for tortious actions (intentional and negligent acts) in snow and ice removal contracts. So, what does this Bill, if passed, mean for your association?
The Bill proposes to make unlawful or void any provision in a snow removal contract that attempts to require a private recipient of snow removal services (such as an association) to hold harmless or indemnify the snow removal company from liability. In other words, if the Bill is passed, a snow removal company will no longer be able to avoid liability by placing restrictions in their snow removal contracts. Likewise, however, an association will not be able to require a snow removal company to agree to waive any liability for actions taken by the association or their agents nor will it be able to require indemnification for those actions. In summary, this means that both associations and snow removal companies will be required to act more prudently and rely on insurance to cover any potential claims rather than attempting to have the other party waive those claims by contract.
Stay tuned for further legislative updates.
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