What are the ramifications if an indemnity clause?

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What are the ramifications if an indemnity clause?

I would like to better understand an indemnity clause. I am a freelance independent contractor and a contract has been given to me that contains wording I find troubling about the potential responsibility I will take on if things go awry. I have a few questions. What are the typical issues where something would go wrong? How is an employer ever responsible even without the indemnity clause of my personal failure to pay taxes as a contractor? Am I over thinking this? Is it likely in your experience that negotiating that term will go successfully or not?

Asked on December 20, 2018 under Business Law, Tennessee


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

Without the language of the clause, we cannot really answer your question: contracts are enforced according to exactly what they say. An indemnity clause is a provision requiring one party to indemnify the other, or pay certain amounts for or on behalf of the other party. If you repost your question quoting the relevant language, we can answer what that language likely means--i.e. who must pay what, when.
As for negotiating an indemnity, or indeed any clause: it comes down to relevant bargaining power: do they want you to work for them more than you want the job, or vice versa? Whomever wants this contract more, the other party has more bargaining power.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption