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Indemnity Agreement Example

When it comes to legal contracts, an indemnity agreement is one of the most important documents that businesses need to have. An indemnity agreement is a contract between two parties where one party agrees to indemnify the other party from any losses or liabilities that may arise from a particular event or situation. In simpler terms, an indemnity agreement is a legal document that outlines the responsibility of each party in case there is a problem.

For instance, if a construction company hires a subcontractor to perform a particular task, the subcontractor may be asked to sign an indemnity agreement. The subcontractor would agree to cover the construction company`s losses or liabilities if something goes wrong on the job site. This agreement provides a sense of security for both parties and helps to protect them from potential financial losses.

To help you better understand indemnity agreements, here is an example:

Indemnity Agreement Example

This Indemnity Agreement (“Agreement”) is made and entered into on [date] by and between [Company A] (“Indemnitor”), located at [address], and [Company B] (“Indemnitee”), located at [address].

WHEREAS, Indemnitor and Indemnitee have entered into a [insert type of agreement, e.g., construction contract];

WHEREAS, the parties to the agreement acknowledge that certain risks may arise from the performance of the contract;

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Indemnification. Indemnitor agrees to indemnify and hold harmless Indemnitee and its officers, directors, employees, agents, and affiliates against any and all claims, damages, losses, liabilities, and expenses (including reasonable attorneys` fees and costs of investigation) arising out of or resulting from the performance of the agreement.

2. Insurance. Indemnitor agrees to maintain during the term of the agreement, at its expense, such types and amounts of insurance covering the risks contemplated by the agreement as are reasonably necessary to protect Indemnitee from financial loss and shall provide evidence of such coverage to Indemnitee or its agents upon request.

3. Notification. Indemnitor agrees to notify Indemnitee immediately of any claim or threats of claim against Indemnitee arising out of or resulting from the performance of the agreement.

4. Deemed Breach. Indemnitor`s failure to perform any of its covenants or obligations contained in this Agreement shall be deemed a breach of the agreement and shall entitle Indemnitee to any and all remedies available at law or in equity.

5. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state of [insert state].

6. Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to the subject matter of this Agreement.

In conclusion, an indemnity agreement is an essential legal document that protects businesses from potential financial losses. This agreement outlines the responsibility of each party in case of a problem and provides a sense of security for both parties. If you are in the process of creating an indemnity agreement, it is highly recommended that you seek the guidance of an experienced legal professional to ensure that your agreement is valid and enforceable.