Twelve Tips to Optimize Your Indemnity Provisions and Related Insurance Coverage

Association of Corporate Counsel, Baltimore Chapter, Focus Newsletter

PUBLISHED ON: September 15, 2017

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In-house counsel regularly face negotiations to determine how to deal with risks under written agreements. Risks inherent in all transactions and business dealings are often allocated to one party or another by indemnity provisions.  Almost equally often, where one party agrees to indemnity the other, the indemnitor intends to rely on insurance coverage to pay the indemnity obligation.  What follows are tips for increasing the likelihood an indemnity provision will be effective and enforceable and that insurance intended to pay indemnity obligations will be applicable and responsive.