Indemnification clause is a contractual clause that requires one party (the indemnitor) to compensate and protect the other party (the indemnitee) from specified losses, damages, or liabilities. It covers claims arising from the indemnitor’s actions or third-party claims. This clause allocates risk, ensuring financial responsibility for adverse events and protecting the indemnitee from harm.
Drafting Tip
Ensure clarity on what losses are covered, the process for claiming indemnification, and any exclusions. Avoid vague language that could broaden the scope unintentionally.
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