What is the purpose of a contract of indemnity?

<span data-sheets-value="{"1":2,"2":"A contract of indemnity is a document through which one party (\"the idemnifying party\", \"indemnifier\") guarantees not to hold another party (\"the idemnified party\") responsible for damages or losses caused by the indemnified's actions. The indemnifier also promises to make good the indemnified's losses."}" data-sheets-userformat="{"2":15105,"3":{"1":0},"11":4,"12":0,"14":{"1":2,"2":0},"15":"Montserrat","16":8}">A contract of indemnity is a document through which one party (“the indemnifying party”, “indemnifier”) guarantees not to hold another party (“the indemnified party”) responsible for damages or losses caused by the indemnified’s actions. The indemnifier also promises to make good the indemnified’s losses.

What is an example of an indemnity contract?

<span data-sheets-value="{"1":2,"2":"The most typical example of an indemnity contract is an insurance contract. The insurer acts as an indemnifier, or indemnitor, and agrees to make good losses or damages of the insured (the indemnified). In exchange, the insured pays premiums to the insurer."}" data-sheets-userformat="{"2":15105,"3":{"1":0},"11":4,"12":0,"14":{"1":2,"2":0},"15":"Montserrat","16":8}">The most typical example of an indemnity contract is an insurance contract. The insurer acts as an indemnifier, or indemnitor, and agrees to make good losses or damages of the insured (the indemnified). In exchange, the insured pays premiums to the insurer.

What is the most common form of indemnity agreement?

<span data-sheets-value="{"1":2,"2":"A common indemnity agreement includes three parts: acknowledgements of the indemnifying party, release and indemnity, and general provisions. For more detail, check out this template."}" data-sheets-userformat="{"2":15105,"3":{"1":0},"11":4,"12":0,"14":{"1":2,"2":0},"15":"Montserrat","16":8}">A common indemnity agreement includes three parts: acknowledgements of the indemnifying party, release and indemnity, and general provisions. For more detail, check out this template.

Deed of Indemnity Template

Prepared for:

[Client.FirstName][Client.LastName]
[Client.Company]

Created by:

[Sender.FirstName][Sender.LastName]
[Sender.Company]

PARTIES:

[Sender.Company] of [Sender.State], [Sender.Country], with a registered address at [Sender.StreetAddress] (“the Indemnified Party”)

AND

[Client.Company] of [Client.State], [Client.Country], with a registered address at [Client.StreetAddress] (“the Indemnifying Party”).

RECITALS:

The Indemnifying Party wishes to description of activity (the “Activity”).
The Indemnified Party has not required the Indemnifying Party to undertake the Activity, but has consented to the Indemnifying Party undertaking the Activity, subject to the provisions of this Deed of Indemnity (this “Deed”).
The Indemnified Party has not made an independent assessment of the potential risk associated with undertaking the Activity, and the Indemnifying Party is fully aware of the potential risks associated with undertaking the Activity.
The Indemnifying Party wishes to voluntarily undertake the Activity, and agree to indemnify and hold the Indemnified Party harmless as described in the provisions of this Deed.

1. ACKNOWLEDGEMENTS OF THE INDEMNIFYING PARTY

The Indemnifying Party acknowledges and understands the following risks associated with the Activity which have been made known to the Indemnifying Party, and the Indemnifying Party acknowledges and understands that there may be other risks associated with the Activity.

2. RELEASE AND INDEMNITY

The Indemnifying Party hereby agrees to indemnify and hold harmless the Indemnified Party, including its directors, officers, agents, employees, affiliates, independent contractors and subcontractors from and against any and all liability, loss, costs, damages and expenses (including any legal fees), causes of action, actions, claims, demands, lawsuits or other proceedings, (collectively, “Claims”), arising out of or in any way connected with the Activity. The Indemnifying Party further agrees to indemnify and hold harmless the Indemnified Party, including its directors, officers, agents, employees, affiliates, independent contractors and subcontractors for any incidental, indirect, special or consequential damages, or any loss of use, revenue or profit, by any person, entity or organization, including, without limitation, the Indemnified Party or its affiliates, claimed or resulting from such Claims.

3. GENERAL PROVISIONS

This Deed of Indemnity shall be governed by and interpreted in accordance with the laws of the State of [Sender.State], in [Sender.Country], excluding any conflict or choice of law rule or principle that might otherwise refer construction or interpretation of this Deed of Indemnity to the substantive law of another jurisdiction. Any provisions of this Deed of Indemnity which are prohibited or unenforceable by operation of law shall not invalidate the remaining provisions of this Deed.

EXECUTED by the parties as a Deed on:

Signed for and on behalf of [Sender.Company] by:

[Sender.Company]

Signature

MM/DD/YYYY

[Sender.FirstName][Sender.LastName]

[Client.Company]

Signature

MM/DD/YYYY

[Client.FirstName][Client.LastName]

Deed of Indemnity Template

RECITALS:

1. ACKNOWLEDGEMENTS OF THE INDEMNIFYING PARTY

2. RELEASE AND INDEMNITY

3. GENERAL PROVISIONS

Deed of Indemnity Template

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