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You're allowing someone to use your property and you want to be protected against damages caused by the other party. You're hiring someone to provide services for yourself or your business. You want to protect someone from being sued by others because of your activities.
Title the letter as a "Letter of Indemnity" to make it clear what the document is about. Include a statement that the agreement will be governed by the laws of the specific state (where the agreement would be taken to court). Begin the letter confirming the contract already in place with the other party.
Definition and examples. 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.
THE PURPOSE OF THE INDEMNITY CLAUSE In an indemnity clause, one party agrees to defend the other and pay for all costs of the lawsuit if it is sued by a third party for specified reasons and to pay any damages and judgment resulting from the lawsuit.
After Janet received several speeding tickets, the cost of her indemnity insurance skyrocketed. The indemnity policy will protect the doctor in case of a malpractice suit. The criminal's deal with the prosecutor was his indemnity from a lengthy prison sentence.
transitive verb. To indemnify someone against something bad happening means to promise to protect them, especially financially, if it happens. [formal] They agreed to indemnify the taxpayers against any loss.
Indemnify Law and Legal Definition. To indemnify means to reimburse another for a loss suffered because of a third party's or one's own act or default. The right to indemnity and the duty to indemnify commonly comes from a contractual agreement, which generally protects against liability, loss, or damage.
An indemnification provision allocates the risk and expense in the event of a breach, default, or misconduct by one of the parties. By Jennifer Paley. An indemnification provision, also known as a hold harmless provision, is a clause used in contracts to shift potential costs from one party to the other.
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