08/06/2026
Contracts do more than spell out each party's responsibilities — they also determine who assumes the risk if something goes wrong. One provision that often catches people off guard is an indemnity clause. While it may seem like standard legal language, it is important to understand what you are agreeing to before you sign.
An indemnity clause is a contractual provision that requires one party to compensate another for certain losses, damages, or legal claims arising from specific events. In other words, it shifts financial responsibility from one party to the other under agreed-upon circumstances.
These clauses appear in many types of agreements, including business contracts, vendor agreements, leases, real estate transactions, and construction contracts. Because every indemnity provision is written differently, the language can have a significant impact on your rights, obligations, and potential liability.
If you have questions about an indemnity clause in one of your contracts, do not hesitate to contact our office. We will help you understand what the provision means, identify any potential risks, and make sure you know exactly what you are agreeing to before you sign.