Cover Me! I'm Going In(demnity)

Introduction

This article considers the role of a claim for an indemnity in professional negligence claims. We ask what lessons can be drawn from the authorities about the nature and limits of a claim for an indemnity, when it can be useful or appropriate, and how should it be used.

What is a claim for an indemnity?

An indemnity in this context might more precisely be described as a claim for a declaration as to the damages that a defendant should pay a claimant in respect of loss that may be incurred which can include liabilities to third parties. It is a form of relief that describes without quantifying a defendant's liabilities. This contrasts with a money judgment – by far the most usual relief in professional negligence claims – which crystallises and quantifies the defendant's liabilities into a judgment debt. We are dealing in this article with claims concerning damage caused by professional negligence, rather than other claims which have similar labels