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Tag: hold harmless agreement

What is an Indemnity Agreement?

indemnity agreement
Man Signing Agreement

A NJ attorney can help companies draw up an indemnity agreement. When an indemnity agreement is set in place, financial responsibility is decided.  Indemnification according to Black’s Law Dictionary, is “a duty to make good any loss, damage or liability incurred by another.” In general it means to “hold harmless” such that one party will hold another harmless in the case of damage or loss. Therefore, indemnification is the act of not being held liable, or of being protected from costs associated with damages. The costs are shifted to another party who is held liable and will have to pay for any such losses. Indemnity also comes with the understanding that when a party is injured, they have a right to claim compensation or reimbursement for any loss or damages. It can also refer to being compensated for damages or loss that occurs because of the action of a separate party. Or it can be described as a sort of legal exemption from having to pay any type of loss or damage in cases where an indemnity clause is included in a contract.