What is this Indemnification Provision in my Contract?

Definition

Indemnification is the action of protecting (someone) by promising to pay for the cost of possible future damage, loss, or injury. In a contract setting, it is a provision where one party promises to pay the costs of potential future liabilities incurred by the other party as a result of some defined set of circumstances that might occur because of the contractual arrangement.

Examples

The most common example of an indemnification agreement is an insurance policy. In an insurance policy contract, […]

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Owning Your Own Business-Insurance Issues

I previously addressed the question of disability insurance in my article “Your Company and Disability Planning” on June 20, 2012.  In addition to disability insurance for the owner and/or employees, a business should consider other forms of insurance as a part of its operation. Of primary importance is general liability and business operations coverage which addresses normal liabilities such as accidents and property damage.  This kind of insurance can also cover important papers, employee theft, and can potentially cover lost […]

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Operating a Business Out of Your Home–Taxes

If you decide to operate your business out of your home, the good news is that you can potentially deduct some of the costs of your home office if you meet IRS requirements.  However, satisfying the IRS is not necessarily easy.  This is partly because it is very tempting to try to reduce taxes by making a claim that a portion of a home is used for business, and the IRS is attuned to this.  Accordingly, you may want to […]

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Operating a Business Out of Your Home—HOAs

Another consideration for operating a home business is the rules, restrictions, or covenants applicable to your home.  Even though zoning may allow your type of home business, it is possible that your activities will run afoul of other applicable limitations.  While such regulations may not be enforceable by your local government, neighbors or neighborhood associates can still take legal action to enforce your compliance with their restrictions.

For example, in some neighborhoods, when you purchase you house, you voluntarily agree to […]

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Operating a Business Out of Your Home—Zoning

Operating a business out of your home has a lot of advantages.  Modern technology makes home offices much more practical today than in the past.  It can be less expensive then paying for additional space outside the home.  It is comfortable and often convenient.  The dress code can be a lot less formal. 

However, zoning can be an important consideration before operating a business out of your house.  Zoning generally specifies how property can be used in order to address […]

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