Indemnification clause new york

New York's legislature saw a problem with that, however. Why Contractors Can Be Compelled to Secure Additional Insurance for Owners and Others Fortunately, the Court of Appeals drew rather clearly the critical distinction between a hold harmless clause and an agreement to procure additional insurance, stating: "An agreement to procure insurance is not an agreement to indemnify or hold harmless, and the distinction between the two is well recognized see , Roblee v Corning Community Coll.

A Final, Critical Footnote One thing bears emphasis: New York's courts have been unequivocal in noting that just having your name listed on a declaration sheet for an insurance policy will not be sufficient to require the insurance company to defend or indemnify you.

Construction contracts frequently contain indemnification provisions. These clauses are often the subject of litigation because they seek to transfer or assign liability arising from identified claims from one party to another.

Once a contract is signed, the board is bound to the agreement. If liabilities arise and they often do , possibly ramifications of not properly vetting, or neglecting to demand indemnification language can result in financial loss. Proactive, forward-looking boards are not afraid to invest time and money into indemnification provisions, says Schneider. And since not all attorneys have the same area of expertise or knowledge, he encourages boards and managing agents to seek out those firms who construct and review HOA vendor contracts daily.

Sign in. Do not show again [X]. Several industries and entities use indemnification clauses. Read more about indemnity clauses in construction here.

Here is an article on Construction Lawyers and how they help their clients. Indemnification clauses in partnerships prevent the personal actions of one partner from affecting the other. This insulation applies to financial and legal decisions while allowing the business to continue operations.

Insurance policies are a common example of one party indemnifying another. When you purchase an insurance policy, the company essentially agrees to indemnify the policy holder, or another party, against any damages that may occur. Although indemnification clauses are used by and between business associates, there are still limitations regarding how much responsibility one should take for another. Indemnification clauses set these limits. Here is an article that goes further into indemnity clauses.

Indemnification clauses are used frequently in the real world. Below are some examples as to when an indemnity clause would be used in a contract or situation to protect the party beng indemnified:. Operator Indemnification. To the fullest extent permitted by Law, but subject to the limitations set forth in Sections Executive will be entitled to be covered, both during and, while potential liability exists, by any insurance policies the Company may elect to maintain generally for the benefit of officers and directors of the Company against all costs, charges and expenses incurred in connection with any action, suit or proceeding to which Employee may be made a party by reason of being an officer or director of the Company, or any subsidiary or affiliate, in the same amount and to the same extent as the Company covers its other officers and directors.

By TRX. By Client. The Indemnified Party shall tender sole defense and control of such claim to the Indemnifying Party. The Indemnified Party shall, if requested by the Indemnifying Party, give reasonable assistance to the Indemnifying Party in defense of any claim.

The Indemnifying Party shall reimburse the. Indemnified Party for any reasonable legal expenses directly incurred from providing such assistance as such expenses are incurred. The Indemnifying Party shall have the right to consent to the entry of judgment with respect to, or otherwise settle, an indemnified claim only with the prior written consent of the Indemnified Party, which consent shall not be unreasonably withheld; provided, however, that the Indemnified Party may withhold its consent if any such judgment or settlement imposes an unreimbursed monetary or continuing non-monetary obligation on such Party or does not include an unconditional release of that Party and its Affiliates from all liability in respect of claims that are the subject matter of the indemnified claim.

Every contract is a good candidate for an indemnification clause.