Should I Sign an Indemnification Clause?

Simply put, you should consider using an indemnity agreement when you are contracting with another party that will be engaged in an action that may create risk. You can incorporate them into a master services agreements or sales contracts or ask associates to sign them as a standalone document.

Should you agree to an indemnification clause?

Be careful when agreeing to cover the indemnified parties' attorneys' fees as a reimbursable expense, as courts generally exclude their recoverability unless the contract specifically provides for it. Basically, every word of the indemnity must be vetted well.

Does an indemnity need to be signed?

An indemnity does not have to be in writing and may be implied (based on a common law principle that when party A acts on the instructions of party B and such act injures the rights of party C, party A may request an indemnity from party B), subject to certain statutes, including consumer credit legislation.