What do you mean Im not covered? I have insurance!

Making sure your business is covered for all losses

An all too common situation that we see in the legal industry occurs when a claim arises and a business is left without insurance cover because the liability may fall under an indemnity.

We have all heard about indemnity clauses but what exactly are they and why do they matter? Often featured in manufacturing agreements, building and construction agreements, and even labour supply arrangements, an indemnity clause can have two purposes - it can either share liability between two parties or it can completely shift liability from one party to another.

Liability shifting clauses are more common and the below excerpt is an example taken from a Manufacturing agreement in which the Supplier shifts liability to the Manufacturer: