An Indemnity Contract serves as a risk transfer mechanism in various business relationships, providing protection against potential losses or liabilities. This type of agreement is commonly used across multiple industries when one party needs to shield another from specific risks or financial exposures. Under U.S. law, these contracts must comply with both federal regulations and state-specific requirements, including anti-indemnity statutes and insurance regulations. The document typically specifies the scope of protection, procedures for claims, and any limitations on liability. An Indemnity Contract is particularly valuable in situations involving complex business transactions, construction projects, professional services, or any scenario where risk allocation between parties needs to be clearly defined and legally enforceable.
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1. Parties: Identification of indemnitor and indemnitee with full legal names and addresses
2. Background: Context and purpose of the indemnification agreement
3. Definitions: Key terms used throughout the agreement including scope of indemnification, covered losses, and relevant parties
4. Scope of Indemnification: Detailed description of specific risks, losses, and circumstances covered by the indemnification
5. Duration: Term of the indemnification obligation and any survival provisions
6. Notice Requirements: Procedures and timeframes for notifying parties of claims or potential claims
7. Claims Procedures: Process for handling and resolving indemnification claims
8. Governing Law: Applicable jurisdiction and choice of law provisions
1. Insurance Requirements: Specific insurance obligations of parties, including types of coverage and minimum amounts required
2. Defense Obligations: Provisions regarding the duty to defend and coverage of legal defense costs
3. Limitations of Liability: Any caps, restrictions, or exclusions on indemnification obligations
4. Subrogation Rights: Rights and procedures for subrogation claims
1. Schedule A - Covered Claims: Detailed list of specifically covered claims, losses, and circumstances
2. Schedule B - Insurance Requirements: Detailed specifications of required insurance coverage, including types, amounts, and carriers
3. Schedule C - Excluded Claims: Specific exclusions and carve-outs from the indemnification obligations
4. Schedule D - Notice Procedures: Detailed procedures for claim notices, including forms and contact information
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