What are the differences between indemnification and liability?

What are the differences between indemnification and liability?

Indemnification refers to a party's obligation to compensate another for losses, while liability is the legal responsibility for those losses.

Can you give me an example of indemnification?

Sure! If a contractor damages a property while working, they may indemnify the property owner by covering the repair costs.

How does liability work in a business context?

In a business context, liability means the company can be held legally responsible for actions that cause harm or loss to others.

Are there any situations where indemnification and liability overlap?

Yes, they can overlap. For instance, a contract may require one party to indemnify another for liabilities arising from specific actions.

What should I consider when drafting an indemnification clause?

Consider the scope of indemnity, the types of losses covered, and any limitations or exclusions that may apply.