Indemnification and insurance requirements in state contracts
N.D. Cent. Code § 32-12.2-17
in effect32-12.2-17. Indemnification and insurance requirements in state contracts
1. The director of the office of management and budget shall establish guidelines for
indemnification and insurance provisions in contracts that may be entered by an
executive branch state agency. The director shall consult with representatives of
executive branch state agencies, the insurance industry, and the business community
to establish and revise the guidelines and provisions. The guidelines must establish
procedures for determining the appropriate indemnification and insurance provisions in
contracts.
2. If a contract for services requires a provision for indemnification, the contract must
require the contractor to indemnify the state and its agencies, officers, and employees
for vicarious liability, but may not require indemnification for the contributory
negligence, comparative degree of fault, sole negligence, or intentional misconduct of
the state or its agencies, officers, and employees, unless the director of the office of
management and budget or the director's designee determines a more stringent
indemnification provision is appropriate. If indemnification is required, the contract
must require that the state be endorsed on the contractor's commercial general liability
policy as an additional insured or must require an equivalent form of protection for the
state.
3. This section does not apply to a contract between an executive branch state agency
and another person that is the owner of private property that is being used to
accommodate a state construction project.
4. The failure of the state to comply with subsection 2 does not void any part of a
contract.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t32c12-2.pdf#nameddest=32-12p2-17Fetched: 10/16/2026