Texas Civil Practice and Remedies Code 127A.002 – Disclosure Regarding Temporary Subcontractor Indemnification Obligations and Insurance Coverage Requirements
(a) Before a temporary placement service refers or assigns a temporary subcontractor to the placement service’s client to perform well or mine services, the placement service shall provide a written disclosure to the subcontractor that:
(1) describes the subcontractor’s indemnification obligations, if any, to the placement service and to the placement service’s client in connection with the services the subcontractor will provide to the client;
(2) describes any insurance policy, including the amount of coverage and any limits on coverage, that is provided for the benefit of the subcontractor by the placement service or the placement service’s client, or both, in connection with the services the subcontractor will provide to the client; and
(3) expressly states whether and to what extent any insurance policy described by Subdivision (2) will cover the subcontractor’s tort liability and contractual indemnity obligations arising out of the performance of the services by the subcontractor for the placement service’s client or clients.
(b) The disclosure required under Subsection (a) may state that the disclosure does not alter, amend, or otherwise modify the terms of any agreement governing services provided by the temporary subcontractor or any insurance policy described by Subsection (a)(2), provided that the temporary placement service is responsible for the content of the disclosure.
Terms Used In Texas Civil Practice and Remedies Code 127A.002
- Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
- Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) A temporary placement service shall:
(1) provide the disclosure required under Subsection (a) to a temporary subcontractor as a separate document from any agreement entered into with the subcontractor by the placement service or the placement service’s client; and
(2) ensure that the disclosure is written in plain English and in a manner that is clear, concise, and designed to enable the temporary subcontractor to understand the subcontractor’s contractual indemnity obligations, if any, and any insurance policy provided for the benefit of the subcontractor in connection with well or mine services to be performed by the subcontractor.
(d) A temporary placement service may satisfy the requirement to describe an insurance policy under Subsection (a)(2) by providing to the temporary subcontractor a certificate of insurance evidencing applicable coverage and limits.