What is an Indemnification Agreement? | Protecting Yourself from Liability in Illinois

What is an Indemnification Agreement? | Protecting Yourself from Liability in Illinois

Video by Attorney Kevin O'Flaherty
Article written by Illinois Attorney Kevin O'Flaherty
Published on
May 6, 2019

An Indemnification agreement is an agreement between two parties providing that if one party is sued for a particular reason, the other party will cover the costs of defending the lawsuit as well as any damages that arise from the suit.  It is a useful tool when two parties are intertwined in a larger transaction, and want to divide legal responsibility between them.   It protects each party from lawsuits for which the other should be responsible. 

‍Indemnification agreements can be built into a larger contract (like a lease, asset purchase agreement, or employment agreement) or it can be a stand-alone agreement.

Typically, when a business is purchased, the seller will indemnify the buyer for any damages that arose from from actions prior to the closing date, and the buyer will indemnify the seller for actions arising after the the closing date.   

‍In the case of a lease, the tenant will usually indemnify the landlord for suits arising from problems with the interior of the property, while the landlord will indemnify the tenant for problems arising from the exterior.  Each party will indemnify the other for actions arising from its own negligence or intentional misconduct.  ​

Contact us for an appoinment

Additional Financial Considerations
from Financial Experts

From Financial Experts

For many years, financial institutions have been creating a disservice to clients and the industry as a whole for years.
View More Professional Considerations

Presented By O'Flaherty Law

O'Flaherty Law is happy to meet with you by phone or at our offices in Downers Grove, Elmhurst, Naperville, St. Charles, Lake in the Hills and Tinley Park, Illinois.

What to Expect From a Consultation

The purpose of a free consultation is to determine whether our firm is a good fit for your legal needs. Although we often discuss expected results and costs, our attorneys do not give legal advice unless and until you choose to retain us. Although most consultations are complimentary, some may carry a charge depending on the type of matter and meeting location.

Leave a Comment With Your Questions

Read more about

Contract Law

 What is an Indemnification Agreement? | Protecting Yourself from Liability in Illinois
Disclaimer: Our articles and comment responses do not constitute legal advice and are not intended to create an attorney-client relationship.

Please contact us to schedule a free consultation for legal advice specific to your situation.

indemnification agreements in Illinois explainedindemnification agreements explainedhow do indemnification agreements work in Illinois?how to protect yourself from liability in a contracthow to prevent liability with indemnification agreementswhat is indemnification?what is indemnification?Illinois indemnification agreements explained
Listen on Google Play Music

Subscribe to our mailing list

* indicates required
Here are some articles that may interest you