§ 127A.002.Disclosure Regarding Temporary Subcontractor Indemnification Obligations and Insurance Coverage Requirements

The chapter’s central requirement, and its timing is the first thing to notice.

The disclosure must be given before the placement service refers or assigns the subcontractor to a client — not on arrival at the site, and not with the first invoice.

Three things must be disclosed.

The subcontractor’s indemnification obligations, if any, to the placement service and to its client.

Any insurance policy provided for the subcontractor’s benefit by the service or the client, including the amount of coverage and any limits on coverage.

Whether and to what extent that insurance will cover the subcontractor’s tort liability and contractual indemnity obligations arising out of the work.

The third requirement is the one that matters most. Knowing a policy exists and knowing whether it answers for what you have promised are different things, and this requires the second to be stated expressly.

Two form requirements follow, and both address how people read documents.

The disclosure must be a separate document from any agreement with the service or the client — so it cannot be a clause buried in a contract.

And it must be written in plain English, clear, concise, and designed to enable the subcontractor to understand their indemnity obligations and the insurance provided.

The service is responsible for the content even where the disclosure says it does not alter the underlying agreements — a disclaimer is permitted, but it does not transfer responsibility for accuracy.

A certificate of insurance evidencing coverage and limits satisfies the insurance description, which gives the service a practical way to comply.