We often come across indemnity clauses in contracts which require one contracting party to 'hold harmless' the other contracting party. There are also judicial statements to the effect that an indemnity is a contract by one party to keep the other harmless against loss.
So, is there a difference between an indemnity clause and a hold harmless clause? More particularly, what are their insurance implications from a company’s financial liability standpoint?
This technical update from LIU focusses on hold harmless clauses and discusses the implications of such a clause on liability insurance coverage.