Do You Know Whether Your Indemnification Agreement Provides Coverage for Third Party Claims, First Party Claims, or Both?
An indemnification agreement is a contractual way for parties to transfer risk of loss, damage, or liability from one party to another. When drafting indemnification agreements, parties usually envision third party losses but may, through oversight or sloppy drafting, fail to consider whether the agreement also covers first party (or direct) claims. To avoid this pitfall, you must understand the…