A Personal Indemnification Agreement is commonly used in England and Wales when individuals need protection against personal liability in their professional capacity. This document is particularly relevant for directors, officers, consultants, and other professionals who may face personal liability risks in their roles. The agreement typically details the scope of protection, claim procedures, and limitations, ensuring compliance with English law principles of contract formation and enforcement. It's essential when individuals take on roles with significant responsibility or risk exposure, providing them with security and confidence in their decision-making.
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1. Parties: Identifies and defines the indemnifier and indemnitee
2. Background: Sets out the context and purpose of the indemnification agreement
3. Definitions: Defines key terms used throughout the agreement including 'Loss', 'Claim', 'Indemnified Party'
4. Scope of Indemnification: Details what losses, liabilities, and circumstances are covered by the indemnification
5. Duration: Specifies the term of the indemnification and any survival provisions
6. Claims Procedure: Sets out the process for making and handling indemnification claims
7. Governing Law and Jurisdiction: Specifies that English and Welsh law governs and establishes jurisdiction
1. Insurance Requirements: Used when the indemnifier must maintain specific insurance coverage to support the indemnification
2. Limitations on Liability: Used when parties agree to include caps or other restrictions on the scope of indemnification
3. Third Party Claims: Used when claims from third parties are likely and specific procedures are needed
4. Subrogation Rights: Used when rights to pursue claims against third parties need to be addressed
1. Schedule 1 - Covered Events: Detailed list of specific situations and circumstances covered by the indemnification
2. Schedule 2 - Excluded Events: Comprehensive list of exclusions from the scope of indemnification
3. Schedule 3 - Claims Procedure: Detailed step-by-step process for making and handling claims
4. Schedule 4 - Insurance Requirements: Detailed specifications of required insurance coverage, limits, and terms
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