Indemnification is the obligation to pay another for a future liability that might arise. When included in a commercial contract, this usually includes coverage of liability in the form of actual damages or losses such as having to pay a third party. In addition, such provisions often include coverage for liability in the form of defense costs, i.e., the cost of dealing with a third party claim even if there is no ultimate liability to the third party. Notably, in […]
This month of May, we will be addressing various issues related to operational issues for businesses. This post will give an overview of the primary sources of risk an average business is subject to as it relates to third parties.
Taking a page from one of my favorite authors, C.S. Lewis, there are too equal and opposite errors for businesses. The first extreme is the business which ignores potential liabilities to third parties as either extremely remote, or non-existent. The other […]