Why do you need to use Indemnification Clauses?

Indemnification is a contractual obligation by one party to pay or compensate for the loss or damage example one of your careless consultants leaves certain equipment on the ground causing a visitor to trip over it and injures himself/herself. The visitor sues you because the accident occurred on your office premises. What will you do? If there was an indemnification clause in the contract between you and your consultant, you can seek the consultant to reimburse the amount that you had to pay to the injured. This clearly explains how you can shift the responsibility for payment to the concerned party who caused the injury.

or liability incurred by another party to the contract or by some third person. For

Indemnity is not necessarily limited to personal injuries or property damage. It can also apply to contractual obligations.

Register for the webinar by Kenneth A. Sprang  “IndemnificationClauses: Protecting your Company When Drafting Contracts” to understand significance of the clause deeper.