Interactive
Indemnity Contracts and Insurance Policies: Look Out for Trouble
Academy of Insurance
Updated Nov 30, 2020Indemnity agreements are the heart of contractual risk transfer. "Indemnification" is the contractual obligation of one party (the transferee) to return another party (the transferor) to essentially the same financial condition enjoyed before the loss (without improvement or betterment). Hold harmless wording shields the transferor from the effects of the legal liability that can be assigned to them as a result of the actions contractually transferred (based, to some extent, on the level of transfer jurisdictionally allowed).
