Indemnification Clauses: All You Need to Know
Author: Glenn W. Birx, FAIA
December 2, 2020 | Updated: December 8, 2020
An indemnification clause can greatly increase an architect’s risk if poorly written. Explore indemnification clause problems you should avoid and suggestions on how to negotiate appropriate indemnification clause language.
Architects & indemnification clauses
Most architects prefer to design the built environment rather than learn about legal concepts such as indemnification. While you should always engage your attorney to review contract language, this legal concept can significantly increase your risks on a project, especially if poorly written.
An indemnification clause is your promise to cover the losses of the other party, usually your client’s, if you cause them harm or cause a third party to sue them. Your Professional Liability Insurance policy will cover you for this risk only when there is proper indemnification language—but not when you agree to language that is excluded from your policy.
This resource highlights the problems that you should avoid and gives suggestions as to how to negotiate appropriate indemnification clauses.
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