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Insurance & Bondingaka: hold harmlessaka: indemnification

Indemnity

In Plain English

A promise to cover another party's losses if something goes wrong on the project.

Definition

Indemnity is a contractual obligation by one party to compensate another for losses, liabilities, or damages. In construction contracts, indemnity clauses typically require subcontractors to defend and hold harmless the general contractor and owner for claims arising from the subcontractor's work. The scope of indemnity obligations—whether limited, intermediate, or broad form—is heavily negotiated and varies by state law.

Example

A concrete subcontractor's contract includes a broad-form indemnity clause requiring it to defend the GC against any injury claims arising from the subcontractor's poured concrete operations.

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