Why Indemnity Alone Isn’t Enough: Coordinating Contract Risk Protections-Why Indemnity Alone Isnt enough HANDOUT

Why Indemnity Alone Isnt enough HANDOUT

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This webinar explains why indemnity clauses alone are not enough to manage contract risk. Effective protection requires coordinating three contract tools: indemnification, insurance requirements, and liability waivers. The presenters emphasize that these provisions must work together like “belt and suspenders” to reduce financial exposure.<br /><br />The course defines indemnity as a promise to bear costs for claims involving bodily injury, property damage, or related losses, often extending beyond just the contracting parties. It distinguishes between indemnity, hold harmless language, and the duty to defend. The presentation compares broad, intermediate, and limited indemnity clauses. Broad form requires indemnity even when the protected party is fully at fault; intermediate form excludes sole negligence of the protected party; limited form allocates responsibility based on comparative fault and is the most enforceable nationwide.<br /><br />A major theme is enforceability. Broad form clauses are prohibited in many states and only partially allowed in others. Intermediate clauses are common in construction but may be difficult to insure. Limited form clauses are presented as the safest and most universally enforceable option.<br /><br />The webinar also discusses common drafting issues, such as how far indemnity should reach, whether “to the fullest extent permitted by law” is needed, whether notice is required, and whether the obligation is actually insurable.<br /><br />On insurance, the presentation explains that additional insured coverage acts as the “suspenders” to indemnity’s “belt.” It reviews common general liability endorsements, including ongoing operations, completed operations, primary and noncontributory status, waiver of subrogation, and per-project aggregate coverage. It also highlights that different endorsement versions provide different levels of protection and that some forms may better match contractual requirements than others.<br /><br />Overall, the webinar teaches how to align indemnity, insurance, and waiver provisions so contract risk transfer is enforceable, insurable, and effective.

Keywords

indemnity clauses

contract risk

insurance requirements

liability waivers

additional insured

hold harmless

duty to defend

broad form indemnity

limited form indemnity

waiver of subrogation