—Legislation authored by Rep. Kate Klunk (R-Hanover) that would protect private children and youth social service agencies and residential treatment providers by voiding certain indemnification clauses in professional liability policies was signed into law today.
Act 127 of 2022
will make indemnification language in government contracts that currently shift all liability to third party providers unenforceable, further ensuring the livelihood and longevity of facilities across the Commonwealth. In addition to driving down insurance prices, the law would ensure mutual indemnification, where each party is liable for its own negligence.
“I am happy the governor saw the value of my legislation, as well as the bipartisan support it garnered, and promptly signed it into law. This will shield at-risk children and families from a system that was previously unstable due to unfairly increased insurance costs and decreased coverage for providers. I look forward to seeing the lasting impact this will have on our critical social service and residential treatment facilities.” Klunk said.
The law will take effect in 60 days.
For questions about this legislation or any other state government issue, please contact Klunk’s office at 717-630-8942.