{"id":174303,"date":"2022-08-11T03:37:49","date_gmt":"2022-08-11T02:37:49","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=174303"},"modified":"2025-03-10T03:15:59","modified_gmt":"2025-03-10T03:15:59","slug":"considerations-agreeing-indemnity-clause","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-contracts\/considerations-agreeing-indemnity-clause\/","title":{"rendered":"Four Legal Considerations Before Agreeing to an Indemnity Clause"},"content":{"rendered":"\n

An indemnity clause requires your business to indemnify the other party against certain types of loss. Some clauses are much broader than others regarding which types of loss they cover. In general, the other party will seek to ensure your business pays damages in case of certain types of breach of contract<\/a>. An indemnity clause can have significant financial repercussions for your business if you breach the contract. Therefore, you must carefully read the requirements and assess the situation before signing the contract. This article will explore four legal considerations for your business prior to agreeing to an indemnity clause in your commercial contract.\u00a0\u00a0<\/p>\n\n\n\n

1. When Could the Indemnity Clause Arise?<\/h2>\n\n\n\n

Some indemnity clauses are narrow and only apply within a limited range of specified events. This will likely avoid scenarios in which a minor, innocuous breach leads to accusations of contract breach. For example, non-perishable goods arriving one day late due to a postage strike are unlikely to trigger an indemnity clause<\/a>. However, some indemnity clauses can be wide. This will depend to an extent on negotiations between your business and the other company. <\/p>\n\n\n\n

\n \n

For example, a broad clause may seek: <\/p>\n