How can I negotiate indemnification clauses in contracts?

What are indemnification clauses and why are they important?

Indemnification clauses are provisions in contracts that allocate risk between parties. They protect one party from losses or damages incurred due to the actions of the other party.

How can I effectively negotiate these clauses?

To negotiate indemnification clauses, clearly define the scope of indemnity, limit liability, and ensure mutual protection where possible.

What common pitfalls should I avoid during negotiations?

Avoid vague language, ensure the clause is balanced, and don't agree to unlimited liability without understanding the risks involved.

Can you give me an example of a well-drafted indemnification clause?

Sure! A well-drafted clause might state: 'Party A agrees to indemnify Party B against any claims arising from Party A's negligence or willful misconduct.'