What are indemnity clauses and how can I negotiate them?

What are indemnity clauses and how can I negotiate them?

Indemnity clauses are provisions in contracts that allocate risk between parties. They protect one party from losses caused by the other. To negotiate them, consider the scope of indemnity, limits on liability, and any exclusions.

Can you give me an example of an indemnity clause?

Sure! An example might be: 'The Contractor agrees to indemnify and hold harmless the Client from any claims arising from the Contractor's negligence or willful misconduct.'

What should I look out for when negotiating these clauses?

Look for broad language that could expose you to excessive liability, any caps on indemnity amounts, and the duration of the indemnity obligations.

Are there any common pitfalls in indemnity negotiations?

Yes, common pitfalls include agreeing to unlimited indemnity, not considering the implications of third-party claims, and failing to clarify the definitions of key terms.