Liability Indemnity Agreement - England and Wales

Liability Indemnity Agreement for the United Kingdom

Liability Indemnity Agreement Template for England and Wales

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What is a Liability Indemnity Agreement?

The Liability Indemnity Agreement is commonly used in business transactions where parties need to allocate risk and establish clear responsibilities for potential losses or legal claims. This document becomes particularly important in scenarios involving complex commercial relationships, professional services, or situations with significant potential liability exposure. Under English and Welsh law, these agreements must carefully balance the interests of both parties while ensuring compliance with statutory requirements and common law principles. The agreement typically includes detailed provisions on the scope of indemnification, claims procedures, and any limitations or exclusions.

What sections should be included in a Liability Indemnity Agreement?

1. Parties: Identification and details of all parties to the agreement

2. Background: Context and purpose of the indemnity agreement

3. Definitions: Key terms used throughout the agreement

4. Scope of Indemnity: Precise description of what losses/liabilities are covered

5. Duration: Time period for which the indemnity remains valid

6. Claims Procedure: Process for making and handling indemnity claims

7. Governing Law: Specification of applicable law and jurisdiction

What sections are optional to include in a Liability Indemnity Agreement?

1. Insurance Requirements: Specifies required insurance coverage to be maintained by the parties

2. Limitations on Liability: Caps or restrictions on indemnity obligations and maximum liability amounts

3. Third Party Rights: Provisions governing the rights of third parties under the agreement

4. Dispute Resolution: Alternative dispute resolution procedures and escalation mechanisms

What schedules should be included in a Liability Indemnity Agreement?

1. Schedule of Covered Claims: Detailed list of specific claims or types of claims covered under the indemnity

2. Insurance Requirements Schedule: Detailed insurance specifications including types of coverage, minimum amounts, and deductibles

3. Claims Handling Procedures: Detailed step-by-step procedures for processing and managing indemnity claims

4. Excluded Losses: Comprehensive list of specific losses or circumstances excluded from the indemnity coverage

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Generate a Bespoke Document

Download a Standard Template

What is a Liability Indemnity Agreement?

What sections should be included in a Liability Indemnity Agreement?

What sections are optional to include in a Liability Indemnity Agreement?

What schedules should be included in a Liability Indemnity Agreement?

Authors

Alex Denne

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