Indemnification Agreement Template

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Simply put, indemnity is protection or security against a specific financial liability. It comes in the form of an agreement known as an indemnity agreement. A lot of high-risk activities, such as heli-skiing or skydiving require that participants sign an indemnity contract before they can participate.

This is to protect the company or business against any liability in the case of an accident. These agreements are also called ‘hold harmless’ agreements, waiver of liability, No-fault agreement, and release of liability. For organizations that want to create an indemnification agreement, they can find customization indemnity agreement templates at reputable online platforms.

What is an Indemnification Agreement?

An indemnification agreement is a contractual agreement that protects a party against any financial liability that may be claimed by another party. It is a contract that holds a company or business harmless for any loss, damage, or burden. The agreement also ensures that adequate compensation is made available for any damage or loss.

There are usually two parties involved in an indemnity agreement. These are the indemnitee and the indemnifier. The indemnitee is the organization that is protected from any financial liability while the indemnifier is the party that reimburses the indemnitee in the case of any claim.

There are variations to the indemnification clause and you can find this on many indemnity agreement sample options. The agreement may include an understanding that the indemnitee has a right to claim compensation or reimbursement for damage or loss to their person.

It may also cover compensation for damage or loss from the actions of some other party. An indemnity agreement form may also include a legal clause of exception from damages or loss. So, when people ask the question – what is an indemnity agreement, the answer is usually not as straightforward as the question.

Checklist of Indemnification Agreement

Although you can find an indemnification agreement sample from CocoDoc, it is important to have a checklist of what to look out for in the contract. With this, you can easily customize your agreement without any stress.

The first thing on the checklist of a sample indemnity agreement is the details of the parties involved, including the names and addresses. The consideration for the agreement, such as continuing employment or continuing service on board should also be included.

The reason or the indemnification should also be part of the consideration when writing an indemnification contract. The terms of the contract, which include the details of the persons that will be indemnified, and what the indemnity is against, should be included.

Additionally, the specifics of the indemnification, such as fees and expenses, settlement costs, and compensation, should be included. The procedures for enforcing the agreement should also be clearly stated and the limitation on the indemnification.

There is no singular sample indemnification agreement that cuts across every need. This is why it is important to have a checklist of what should be included in the document. With this, it will be easier to customize the indemnity letter template that you have.

How Do I Write an Indemnification Agreement?

Depending on the purpose of the indemnification agreement, the content can be simple or more complex. However, irrespective of how simple or complex it is, there are some points you should consider when drafting the document.

First, the indemnifier and the indemnity-holder must be identified and stated. The figure for indemnities must also be stated. It is recommended that you put a limit to the amount of the given indemnities in the contract. It may be a good idea to impose an express obligation to reduce the loss.

Additionally, the timeframe for the claim should be limited to avoid a long-drawn indemnity claim. When drafting an indemnity clause, it should never be written in a wider manner. Do not use general terms. It is better to be specifics and include all the possible circumstances that the contract will cover.

Another aspect of the indemnity agreement that should be included is the repercussion of a breach in the contract. What happens when a party breaches the contract? This should be clearly stated in the agreement document.

To make the process of drafting an indemnification agreement easier for you, it is recommended that you use a customization indemnity agreement sample.

Understanding Your Indemnification Agreement

There are different types of the indemnification agreements and the first step is to understand the type that you have. The two common types are express indemnity and implied indemnity. Express indemnity is a written agreement designed to indemnify a party and it expressly details the terms and conditions under which the parties involved must abide.

Some express indemnity includes insurance indemnity contracts, agency contracts, and construction contracts, among others. Implied indemnity is often not written but is more circumstantial. Before you sign or acknowledge an indemnification agreement, you must review the contract.

It is recommended that you share the document with a legal practitioner for professional input. You should not sign an indemnification agreement until you understand the terms and your obligations in the contract.

If there is any clause that is unclear to you, you should request clarification and do not make any assumptions. Before you append your signature on an indemnification agreement, you must ensure you understand every aspect of the document.


An indemnity agreement is often used in commercial negotiations and it seeks to protect against certain commercial risks. These agreements are usually essential for contract terms. An indemnity agreement must be negotiated adequately before it is included in a contract.

This is because serious consequences may arise as a result of a poorly negotiated indemnification agreement. Ambiguity should be avoided as it presents the risk that the indemnity contract may not cover the losses it is expected to cover. Therefore, parties involved in the agreement must carefully and precisely draft the indemnity agreement. Besides, you might be interested in other agreement templates at CocoDoc.

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