Users' questions

What is the purpose of an indemnity clause in an independent contractor agreement?

What is the purpose of an indemnity clause in an independent contractor agreement?

With respect to the scope of an indemnity clause, an IC will typically agree to cover any third party claims arising in connection with the death or injury of a person, damage to property, or breach of the agreement as a result of the actions or inactions of the IC or its representatives and employees.

Can you indemnify an independent contractor?

Mutual indemnification clause independent contractor refers to a party involved in a contract and specifies indemnification costs and liabilities between parties involved. Such clauses can be constructed so that only one party is indemnified by the other or mutual indemnification occurs.

What is an indemnification clause in a contract?

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.

How do you write an indemnification clause?

“[Company/Business/Individual Name] shall fully indemnify, hold harmless and defend _______ and its directors, officers, employees, agents, stockholders and Affiliates from and against all claims, demands, actions, suits, damages, liabilities, losses, settlements, judgments, costs and expenses (including but not …

What does the indemnification clause in a consulting agreement mean?

Furthermore, some clauses require that the consultant provide a defense for certain claims that might be brought against the business. This might mean that the consultant is financially responsible for finding a defense attorney to work on behalf of the company, along with paying any and all expenses incurred during the legal suit.

What are some examples of mutual indemnification clauses?

Sample Mutual Indemnification Clause “Consultant agrees to indemnify the Client against all damages… caused by the Consultant\[s negligent performance of professional services… Client agrees to indemnify the Consultant against all damages… caused by the Client’s negligent acts.

What does it mean to indemnify a design consultant?

Indemnity is an agreement to assume liability in the event of a loss, and the assumption of liability involves the shifting of risk from one party to another. When a design consultant agrees to indemnify his client, he may be assuming some or all of the client’s potential or actual legal liabilities.

Who is the consultant in a consulting agreement?

Specifically, a consultant agreement is one between a company and a professional consultant. The company in this type of agreement is considered the client and the consultant is the professional vendor providing specific services for the client, whether it be in the form of professional advice or work being done for the business.