As we head into the winter season, be aware there is a new law in Illinois that significantly impacts every retailer, restaurant and hospitality company that has snow removal contracts in place. The new law is called the Illinois Snow Removal Services Liability Limitations Act (815 ILCS 675/1) and it was adopted at the end of August, 2016.  This new law is great for snow vendor companies, but no so great for property owners.

In a nutshell, the new law prevents a property owner from passing liability to the snow removal vendor for snow and ice removal related lawsuits. In other words, property owners can no longer transfer risk from themselves to a snow removal contractor for snow or ice related falls and incidents on the property.

As always, there are exceptions, but none that will help you. The new law doesn’t apply to:

1. Contracts for snow removal or ice control on public roads with public bodies;
2. Contracts for snow removal or ice control with a public utility; and,
3. An insurance policy, surety bond or workers’ compensation.

This means the only entities that remain protected, and can continue to transfer risk, are public entities.

So what does this mean for private companies?

• Look at your snow/ice removal contracts ASAP because they may be null and void.
• If the contract was entered into before August 25, 2016 and it contains an indemnification clause which requires the vendor to indemnify and hold the property owner harmless, it will remain enforceable.
• If the contract was entered into on or after August 25, 2016 and it contains an indemnification clause which requires the vendor to indemnify and hold the property owner harmless, it will be void and unenforceable and neither party will be able to seek indemnification from the other.

Considering it is November, I assume every company out there already has its snow removal contracts in place.   If it hasn’t done so already, don’t be surprised if your snow removal vendor asks for the contract to be revised so the contract only provides indemnity for that portion of a loss which arises out of its own fault, not the other party.  Also don’t be surprised if the vendor wants you to indemnify the vendor to the extent a loss was caused by the property owner/manager and vice versa.

If you were lucky enough to enter into your snow removal contracts before August 25, 2016, be prepared to have a revised contract next winter.

Look on the bright side, the natural accumulation defense is as strong as ever!