What does it mean to indemnify defend and hold harmless?

What does it mean to indemnify defend and hold harmless?

The main difference in this case is that “hold harmless” may require a party to protect against actual losses as well as potential losses while indemnification protects against actual losses only.

What does an indemnity clause mean?

Indemnity is a contractual agreement between two parties. In this arrangement, one party agrees to pay for potential losses or damages caused by another party. With indemnity, the insurer indemnifies the policyholder—that is, promises to make whole the individual or business for any covered loss.

How does an indemnity clause work?

An indemnity clause is a promise by one party (the indemnifying party) to be responsible for and cover the loss of the other party (the indemnified party) in circumstances where it would be unfair for the indemnified party to bear the loss.

What is a defense and indemnity agreement?

Defense and indemnity clauses are routine devices used in construction contracts to shift responsibility for potential risks from one project participant to another. The terms defend and indemnify often appear in the same clause, but they are each typically understood to impose different obligations.

Why do we need indemnification clause?

The most important part of an indemnification clause is that it protects the indemnified party from lawsuits filed by third parties. This protection is important because damaged parties are still able to pursue compensation for their losses even if this clause isn’t in the contract.

What is the difference between a release and an indemnity?

Unlike a release, which suppresses a cause of action, an indemnity creates a potential cause of action between the indemnitee and the indemnitor. A release extinguishes any actual or potential claims the releasor may have against the releasee without regard to third parties.

Why do you need an indemnity clause?

In most contracts, an indemnification clause serves to compensate a party for harm or loss arising in connection with the other party’s actions or failure to act. The intent is to shift liability away from one party, and on to the indemnifying party.

What does indemnify mean in legal terms?

To indemnify another party is to compensate that party for losses that that party has incurred or will incur as related to a specified incident.

What does fully indemnify mean?

to pay someone for loss or damage that they have suffered, or to formally promise to do this: idemnify sb against sth The insurer will indemnify the policyholder against loss of or damage to the motor car. The customer shall fully indemnify the company against any costs or expenses.

How do you enforce an indemnity clause?

Tips for Enforcing Indemnification Provisions

1. Identify Time Periods for Asserting Indemnification Rights.
2. Provide Notice in a Timely Fashion.
3. Notify All Concerned Parties.
4. Understand Limitations on Recovery.
5. Exclusive Remedy.
6. Scope of Damages.
7. Claims Process/Dispute Resolution.

What happens when you indemnify someone?

Indemnity or indemnification is a common term that is included in many contracts. In its simplest form, indemnity means that one party in the contract is responsible for compensating another for loss, damages, and/or injury incurred as a result of that party’s actions.

What does the word indemnify mean in legal terms?

What does it mean to indemnify a website?

Translated into plain English this clause means that if the website gets sued* that you agree that you will defend them (“defend”), not sue them (“hold harmless”) and make whole (“indemnify), including paying all costs like legal fees for lawyers and courts, fees for fixing issues that caused the claim.

What is an indemnity clause in a contract?

An indemnity clause, also known as an indemnification clause, is a standard waiver clause that states that one party won’t hold the other liable for damages, losses, or costs associated with incurred legal issues. For liability waivers, these potential costs are typically the loss, damages, or other legal costs that would arise from a lawsuit.

What does hold harmless and indemnify mean in a contract?

For example, they may commit an action that results in you being sued by a third-party. The words defend, hold harmless, and indemnify must be included in an indemnification clause. Essentially, hold harmless and indemnify mean the exact same thing. When you indemnify another person, you are covering their losses that you have caused.

What is indemnity and why is it important?

Indemnity assures a party protection from financial liability stemming from the acts of its client or contractor. Indemnity increases the level of trust in a relationship because one party is willing to cover the other party’s losses.