Indemnity Clause Law and Legal Definition
In a contract an indemnity clause requires that one party indemnify the other, in the event that certain expenses are incurred. Under an indemnity clause one party or both the parties commit to compensate the other or each other for any loss, injury or liability that arises out of the contract. An example of an indemnity clause:
“The subcontractor agrees to indemnify and hold harmless the contractor against loss or threatened loss or expense by reason of the liability or potential liability of the contractor for or arising out of any claims for damages.”
