Complex Commercial Litigation
Contract Claims
An indemnity provision shifts risk by obligating the indemnitor to reimburse or defend the indemnitee against defined claims. Scope varies from indemnity for the indemnitor's own negligence to broad form indemnity covering the indemnitee's negligence as well.
The duty to defend under an indemnity clause, where included, is broader than the duty to indemnify and may arise before liability is determined.
Alternative Names:
Indemnity Provision, Contractual Indemnity
Why it Matters?
Indemnity is the primary risk allocation mechanism in construction, transportation, and vendor relationships, and it frequently determines who actually pays a loss regardless of who was negligent. The recurring disputes are whether the clause covers the indemnitee's own negligence, which requires clear language in most states, and whether a defense obligation exists separately from indemnity. Anti-indemnity statutes void broad form provisions in many states for specific industries.
Frequently Confused with
Related terms
Frequently asked questions
Does indemnity cover the indemnitee's own negligence?
Is a defense obligation automatic under an indemnity clause?
