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Often a company will agree to indemnify its shareholders, members, officers, and directors for actions they take in such roles on behalf of the company. In order to attract new investors in a startup, a common agreement that investors will demand is an indemnification agreement.
For example, the term "indemnify" is used when a business hopes to protect itself against claims from a customer's error, while a hold harmless clause prevents a business from taking any responsibility for a customer's mistake. Experts recommend that both terms be included for maximum protection.
Type 1 indemnity provisions require a party to indemnify and defend another from any claim arising out of or related to the indemnitor's scope of work, including the active negligence or misconduct of the indemnified party. Only sole negligence or willful misconduct of the indemnitee could not be indemnified.
Level One: Broad Form Indemnification. Broad form indemnification requires the indemnitor to pay not only for losses for which it is responsible but also for losses solely caused by the indemnitee. ... Level Two: Intermediate Form Indemnification. ... Level Three: Limited Form Indemnification.
"The Contractor agrees to defend, indemnify, and hold harmless the Owner and [any other parties] from liability and claim for damages due to bodily injury, death, property damage, sickness, illness, disease, or expenses or losses from the Contractor's performance under this agreement to renovate a home to be paid for ...
Service Provider hereby releases, indemnifies, defends and holds harmless Owner and the other Owner Indemnified Parties from and against any and all Liabilities (a)to the extent attributable to or arising out of the gross negligence or willful misconduct of any Service Provider Indemnified Parties or (b)for personal ...
party indemnification claim is a claim by the indemnified party for a loss suffered directly. A thirdparty indemnification claim is a claim by the indemnified party for a loss resulting from a claim by a third party.
An agreement to indemnify a person against an act thereafter to be done, is void, if the act be known by such person at the time of doing it to be unlawful. 2774. An agreement to indemnify a person against an act already done, is valid, even though the act was known to be wrongful, unless it was a felony. 2775.
Under a first party claim, A agrees to indemnify B for loss or damage incurred as a result of the conduct of A, regardless of whether C exists or makes a claim against B. Essentially A indemnifies B for B's own losses.
The Contractor shall defend, indemnify and hold the County, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by ...