Indemnity Agreements

Indemnity agreements are contracts where one party agrees to compensate another for certain losses or damages. Essentially, if one party faces a claim or financial loss due to a specific event, the indemnifying party promises to take on that responsibility. This is common in business relationships, where one business may protect another from liability arising from risks associated with their activities. Indemnity helps allocate risk and ensures that the affected party is financially supported, promoting trust and security in various transactions.