Indemnity Letter Sample For Construction
Description
How to fill out Sample Environmental Indemnity Agreement?
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FAQ
It is primarily intended to protect the person who is providing goods or services from being held legally liable for the consequences of actions taken or not taken in providing that service to the person who signs the form. Indemnity clauses vary widely.
In a business transaction, a letter of indemnity (LOI) is a contractual document guaranteeing that specific provisions will be met between two parties in the event of a mishap leading to financial loss or damage to goods. An LOI is drafted by third-party institutions such as banks or insurance companies.
Typically, an insurance contract dictates that the insurer, also known as the indemnitor, agrees to compensate the other party involved (the insured or the indemnitee) for any damage or losses in return for premiums paid by the insured. University of Wisconsin System. "Hold Harmless and Indemnity Agreements."
One indemnity example involves loaner cars. If an individual signs an agreement with an indemnity clause and gets into an accident with a loaner car, then that individual will be solely responsible for the costs associated with the accident.
An indemnity (hold harmless) clause is a section of a construction contract between two or more parties, typically a property owner and contractor(s), regarding the responsibility of losses or damages during a construction project.