Indemnification Agreements

An indemnification agreement is a contract where one party agrees to compensate or protect the other from certain losses, damages, or legal claims. Essentially, it shifts the financial responsibility for specific issues from one party to another. For example, if a company hires a contractor and the contractor causes damage, the agreement might require the contractor to cover the costs. These agreements are common in business to manage risks and clarify who is responsible for potential problems, ensuring that one party isn't unfairly burdened with costs arising from the other's actions.