What exactly does indemnity mean? Definition and examples Home insurance indemnity. When people take out a home insurance policy, they pay premiums to the insurance company. Double indemnity is a provision of insurance in which the insurance company agrees to pay the insured.
Many high-risk activities, like skydiving or heli-skiing, require individuals to sign an indemnity agreement before they can participate. Broad form indemnity agreements (this is also commonly refererred to as the “no-fault” agreements), is always common among construction contracts wherein any instances of damages or injuries will be placed on to the sub-contractors. The Warrant Agent shall be liable hereunder only for its own gross negligence, willful misconduct or bad faith. The Company agrees to indemnify the Warrant Agent and save it harmless agains.
These letter are drafted traditionally by another party that let’s we call a third party organization. Business people enter into indemnity agreement samples with other parties to protect themselves against employee lawsuits or claims for damages to goods or vehicles. Tenant shall protect, indemnify, and hold harmless Pierce County, its elected and appointed officials, agents, representatives, and employees while acting within the scope of their duties as such, to the maximum extent allowed by law from and against all claims, demands, and causes of action of any kind or character, including the cost of defense, arising in.
The business owner basically transfers the risk of having to pay for negligence to the insurance company.
In this context, there are several types: 1. The examples of the contract of indemnity are given hereunder: Suppose John sold a house to Paul on the instruction of Peter. Afterwards, it is disclosed that Alex is the registered. Beta Insurance Company entered into a contract with Alpha Ltd.
An indemnity agreement is a contract where those involved agree that the other be ‘held harmless’ for losses or damages, or where the parties agree that the other is legally exempt from losses or damages incurred. You want to protect someone from being sued by others because of your activities. The retailer may fear that, if the products are defective, it will be exposed to product liability claims by consumers. The retailer will usually seek an indemnity from the manufacturer against those claims, in order to be compensated if such claims arise. For example , suppose a manufacturer sells products to a retailer.
The indemnity clause is an integral part of any liability waiver. Use indemnity in a sentence. When you buy insurance and your insurance protects you from being sued or from financial loss, this is an example of indemnity. YourDictionary definition and usage example. A letter of indemnity is written by a third party on behalf of someone to cover against losses or damages.
This letter is used to state that if one party fails to make required payments or to complete a contract, the third party will take over making the payments or fulfill the terms of the contract. Examples of contracts where indemnities can be used include: Assignment of intellectual property rights: when assigning IP rights to someone, the assignor often gives the assignee. Software licensing agreements: when a software developer grants a company the right to use its software, there is.
From a legal perspective, it may also refer to gaining immunity from any liability or damages. Another example of an indemnification clause arises when someone hires a contractor to perform work at his or her home. Sentence Examples Members of the Senate and of the House of Commons receive an annual indemnity of $250o, with a travelling allowance. From Simon he demanded an indemnity of moo. As with the Eminem example above, sometimes the mistakes take time to come about.
For instance a software developer may create a program that appears fine when complete but when left to run for a few months can develop significant bugs that cause the program to be unsuitable for use. With this example , you can understand that once you sign this agreement, you certainly give away some of your rights and with this agreement, you can’t challenge or sue the other party as you have signed. If you are giving the indemnity , you may want a requirement that the indemnified party must mitigate their loss for events within your control. Hold Harmless Agreement Examples. The insurance company then pays a set portion of your total charges.
Say your co-payment is. That means you are still required to pay of the remaining amount of $60 which would be $120. This agreement shall be unlimited as to amount or duration, and it shall be binding upon and inure to the benefit of the parties, their successors, assigns and personal agents and representatives.