We’ve worked with legal experts and proofreaders to create a simple indemnification agreement template for you to use repeatedly in your dealings.
We’ve worked with legal experts and proofreaders to create a simple indemnification agreement template for you to use repeatedly in your dealings.
What’s in this template?Indemnification is not a common word used in everyday life. Yet, most contracts have some sort of reference to indemnification. So what does it mean?
An indemnification agreement (also known as a hold harmless agreement) is a legally binding contract that holds a business harmless for any burden loss or damage done by the person or entity. An indemnification agreement also ensures that compensation is given to recoup any losses and damages.
Indemnity can be a complicated legal subject.
DISCLAIMER: We are not lawyers or a law firm and we do not provide legal, business or tax advice. We recommend you consult a lawyer or other appropriate professional before using any templates or agreements from this website.
Hopefully, after reading this post, you see just how critical it is to understand both sides of an indemnification agreement. That’s why we’ve created a template to make it super easy for you to get protection in your business.
Click below to download our template todayIn an example where you could assume the risk for something you’re not directly responsible for, you’ll likely need an indemnity agreement. Let’s look at some cases below.
You take out a home insurance policy where you pay a monthly premium as part of your agreement. In the event that your house burns down from a natural disaster, the insurance company is responsible for covering costs to bring the house back to its original state.
You run a dog walking business where clients pay you to walk their dogs. However, one day one of the dogs you’re walking attacks another dog. If you were indemnified, your client would be responsible for covering any costs related to damages, including vet fees and legal proceedings.
An indemnity agreement is essential as many business relationships that result in some shared risk. A hold harmless agreement forces you to think about these risks in advance and put measures in place to protect you if something happens.
Without an indemnification agreement, parties will likely blame each other when issues arise, resulting in expensive lawsuits.
The challenge with hold harmless agreements is that they can be written in a one-sided way. That’s why it’s worth engaging with attorneys when assessing these clauses to ensure the deal is reasonable and fair for all parties.
Hopefully, after reading this post, you see just how critical it is to understand both sides of an indemnification agreement. That’s why we’ve created a template to make it super easy for you to get protection in your business.
