A properly worded indemnification clause is critical to reducing risk in a construction contract. An indemnification clause may include any, or all, of three distinct obligations, including to (1) indemnify, (2) defend, and (3) hold harmless the client. Indemnify means to reimburse your client following a loss.
Indemnification clauses in contracts may require the design professional to indemnify, hold harmless, and defend its client against claims, damages, and allegations. If you agree to indemnify your client for anything other than damages arising out of your negligence in the performance of professional services, you will be contractually liable for damages that you would not have been liable for under common law.
Kent Holland, a well known and widely respected attorney, has built his career around risk management for architects and engineers and their liability stemming from design work.
Click HERE to visit Kent’s website, ConstructionRisk.com and learn more about the importance of a strongly worded Indemnification Clause in your contract.