Last updated May 30, 2022
Indemnity Agreement
Alternate Names:
An Indemnity Agreement is also known as a:
- Hold Harmless Agreement
- Indemnification Agreement
What is an Indemnity Agreement?
An Indemnity Agreement is a document that removes liability from one party in a business relationship.
Who are the parties in an Indemnity Agreement?
There are two main parties in an Indemnity Agreement, but there can be more than one of each.
Indemnitee: The indemnitee, which may be either an individual or a corporation, is the party that requires protection. This means that they are the party whose liability will be removed with the agreement.
You may only have multiple indemnitees if they are acting together, such as a husband and wife.
Indemnifier: An indemnifier in a hold harmless agreement, which may also be an individual or corporation, is the party who is providing protection. This means that they are removing liability from the indemnitee.
When there are two or more indemnifiers they are held jointly liable for any claims.
For example, if a business was holding a community event on private property, the owners of the property would not want to be held responsible for any injuries, accidents, or other claims in relation to the event. That would make the property owner the indemnitee, and the company running the event the indemnifier.
Essentially, the company would agree to take responsibility for any injuries or harm that arose during the event on private property as opposed to the property owners.
What are the terms in an Indemnity Agreement?
You may choose any of the following terms to include in your Indemnity Agreement:
Indemnity insurance: You may require that the indemnifier (the party offering protection) purchase indemnity insurance to cover any future liabilities.
Indemnification against criminal proceedings: You can stipulate that the indemnifier cannot pursue legal action.
Confidentiality clause: A confidentiality clause ensures no private information in relation to the contract or the indemnification is shared with outside parties.
Monetary limit: You can specify a maxiumum monetary amount of indemnidication (protection) for each claim or action.
Frequently Asked Questions:
Indemnity/Hold-Harmless Agreement FAQ 