How do I write an indemnity agreement?

“[Company/Business/Individual Name] shall fully indemnify, hold harmless and defend _______ and its directors, officers, employees, agents, stockholders and Affiliates from and against all claims, demands, actions, suits, damages, liabilities, losses, settlements, judgments, costs and expenses (including but not …

What is indemnification agreement?

Indemnity is a contractual agreement between two parties. In this arrangement, one party agrees to pay for potential losses or damages caused by another party. With indemnity, the insurer indemnifies the policyholder—that is, promises to make whole the individual or business for any covered loss.

What is indemnification document?

A letter of indemnity (LOI) is a contractual document that guarantees certain provisions will be met between two parties. The concept of indemnity has to do with holding someone harmless, and a letter of indemnity outlines the specific measures that will be used to hold a party harmless.

What is an example of indemnification?

Indemnity is compensation paid by one party to another to cover damages, injury or losses. An example of an indemnity would be an insurance contract, where the insurer agrees to compensate for any damages that the entity protected by the insurer experiences.

What is broad form indemnity agreement?

Broad Form Indemnity. Broad Form Indemnity requires one party to assume the obligation to pay for another party’s liability even though that other party is solely at fault. One of the key indicators an indemnity agreement is Broad Form is the inclusion of the phrase “caused in whole or in part.”.

What is the indemnity agreement?

An indemnity agreement is a contract that ‘holds a business or company harmless’ for any burden, loss, or damage . An indemnity agreement also ensures proper compensation is available for such loss or damage.

What does a letter of indemnification mean and?

A letter of indemnity (LOI) is a contractual document that guarantees certain provisions will be met, between two parties. Such letters are traditionally drafted by third-party institutions like banks or insurance companies, which agree to pay financial restitution to one of the parties, should the other party fail to live up to its obligations.

What does that indemnification clause mean in your contract?

Indemnification in a Contract. An indemnification clause is generally included in most contracts to provide financial compensation for one party as a result of the potential act or omission of another party in the contract.