What is Indemnify and How It Can Help Your Business
Do you know what indemnify and how it can help your business3 min read
Do you know what indemnify and how it can help your business? Indemnify is a legal term that requires one party to protect another party from unforeseen losses. Indemnity can be very important for business operations. This is especially true in Illinois where local business regulations require a higher level of protection to avoid costly lawsuits. If you’re looking for an experienced attorney that understands local regulations, UpCounsel can provide you with the counsel you need.
When it comes to indemnity, a potential issue can arise with any given contract. At its simplest, indemnity means one person or company (the “indemnitor”) has agreed to be liable for any expenses that the other party (the “indemnitee”) might incur when something goes wrong. This is usually negotiated between two parties at the time a contract is drawn up. It’s beneficial to both sides, as the indemnitor is able to protect themselves from any potential losses that may arise.
The most common types of indemnites are general and specific indemnities. A general indemnity is usually found within a contract, and applies to almost any foreseeable loss. For example, a general indemnity might state that the indemnitor must indemnify the indemnitee against any claims, costs, and damages incurred from any breach of that contract.
On the other hand, a specific indemnity is less common, and tends to relate to an event or situation which has a specific risk factor. For instance, a specific indemnity might relate to any losses the indemnitee incurs as a result of an error or omission. This type of indemnity can be incredibly beneficial to a business, especially if they are liable for certain actions or have employed contractors.
You should also understand the two main positions associated with indemnity, such as agreeing to indemnify and agreeing to be indemnified. This refers to whether you are the indemnitor or the indemnitee, and should be clearly laid out in the contract. Agreeing to indemnify will protect the indemnitee from any losses that may arise as a result of actions or omissions by representatives of the business. On the other hand, agreeing to be indemnified will protect the indemnitor from any losses arising from their own actions or omissions.
When it comes to Illinois, the state may have specific regulations regarding indemnity that are different from those in other states. Therefore, it’s important to understand how these regulations may impact the contract, and to make sure that the contract respects those regulations. Having an experienced lawyer review the contract is the best way to ensure that your business is properly protected.
At UpCounsel, we have access to experienced lawyers who understand local regulations pertaining to indemnity. We have an online network that provides you with access to attorneys who have an average of 14 years of experience in the business arena. Additionally, you can review profiles of online attorneys and read reviews of their work to ensure that you are making the right choice.
Whether you need an attorney for a one-time consultation, or you need an entire freelance legal team to handle your contracts, UpCounsel is here to help. We proudly serve businesses of all sizes, from small start-ups to Fortune 1000 companies. Contact us today to get the legal counsel and protection you need.
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