Knock For Knock Liability Provisions

'Knock for knock' is an arrangement commonly used in the offshore oil and gas industry. It often gains attention only in the litigation arising after a major disaster when the parties involved are trying to establish whether they (or one of their contracting partners) should be financially liable for the costs of the disaster.

What is knock for knock?

The knock for knock provision in a contract takes the form of mutual indemnities between the parties.

There are variations on the drafting and scope of knock for knock provisions but the basic concept is that Party A bears the risk of (and indemnifies Party B against) any claims made against Party B for:

• the death or personal injury of any of Party A's employees; and