What are some examples of indemnification clauses?

What are some examples of indemnification clauses?

Indemnification clauses are provisions in contracts that protect one party from losses or damages caused by another party. For example, a contractor might agree to indemnify a property owner against any claims arising from the contractor's work.

Can you give me a specific example?

Sure! A common example is: 'The Contractor shall indemnify and hold harmless the Owner from any claims, damages, or liabilities arising out of the Contractor's performance of the work, including attorney's fees.'

What should I consider when drafting one?

When drafting an indemnification clause, consider the scope of indemnity, the types of claims covered, and any limitations on liability. It's also important to ensure that the clause complies with local laws.

Are there any risks associated with indemnification clauses?

Yes, risks include potential overexposure to liability and the possibility of being held responsible for claims that may not be directly related to your actions. It's crucial to negotiate terms carefully.