When you need a comprehensive understanding of indemnification meaning within the context of Dallas-based business law, it’s important to find experienced, highly-rated counsel that are well versed in the nuances of the local regulations. Listed below are the top 5 things to consider with regards to indemnification meaning if you’re in the Dallas-Fort Worth area.

Indemnification Meaning

At its core, indemnification meaning can be boiled down to the concept of “being made whole” following economic loss. A party being indemnified is entitled to reimbursement for costs, losses, expenses, and liabilities that have been incurred. An indemnifying party which is typically the defendant in a tort lawsuit promises to cover the economic losses associated with a claim when indemnification is in place.

Indemnification meaning in Dallas

Under the Texas Civil Practice and Remedies Code, Dallas businesses are subject to both express and implied indemnification are available to operators by way of Texas law. Most commonly, express indemnification can be found in a contract between two or more parties, while implied indemnity is an obligation created by law to protect the parties to an agreement.

Scope of Liability

When considering indemnification meaning in Dallas, the scope of the indemnification has to be clearly defined. This is the precaution that needs to be taken to determine the true limits of what is being indemnified. An indemnifying party may provide coverage for specific losses or they may limit their obligations to offer reimbursement of very specific defensible items.

Types of Indemnification Risk

When discussing indemnification meaning in Dallas, there are five main types of risk areas that must be considered:

• Financial Loss - These losses include direct or consequential costs and liabilities, attorney's fees, and pre-judgment or post-judgment interest payments.

• Product Liability - Liability coverage for bodily injury or property damage arising out of the use or misuse of a product.

• Professional Services & Malpractice - Covering the professional services provided by an indemnifying party to another entity as well as associated liabilities.

• Regulatory Violations - Covering all liabilities related to both non-compliance of the law as well as breach of warranties.

• Shareholder Loss - All losses incurred by an individual in relation to their ownership or potential ownership of shares in a company and related liabilities.

Perils of Limiting Indemnification

On the surface it may seem like a good idea and a cost savings measure to limit indemnification provisions, but in practice this type of limitation can backfire. Limiting the scope of indemnification in Dallas-based contracts can result in higher monetary losses in the event that any of the five indemnification risks listed above actually occur. It's important to consult a highly-rated Dallas-based attorney to ensure that indemnification meaning is properly understood and identified in your agreements.


Understanding indemnification meaning is at the core of protecting a business in the Dallas-Fort Worth area. It’s important to have experienced counsel that is well versed in local regulations to ensure you have adequate coverage to make you “whole” in the event of economic losses. To make sure you can rely on high-quality attorneys on demand its best to work with UpCounsel, a network of experienced lawyers who specialize in business law in the Dallas-Fort Worth area.


Indemnification Meaning,


Texas Civil Practice