Health Law Consulting Blog

Wednesday, July 4, 2018

Indemnity 101 – From the Perspective of Technology Contracts

p>Faulk & Associates, LLC takes a practical approach to indemnity in technology agreements and provides this non-binding general guidance commentary.  The key to indemnity provisions, which can be written broadly or narrowly, is to remember that good drafting upfront is essential to avoiding downstream risk.  There are so many factors that can impact the indemnity under commercial agreements, making it crucial for the parties involved with understanding such provisions to give them due care and consideration. In a nutshell, these are not provisions to be overlooked, undervalued or worse, ignored.

Drafting, negotiating and interpreting indemnity provisions is not to be taken lightly. In general, it is extremely difficult to negotiate an indemnity clause for any agreement. Admittedly, it is even more challenging when negotiating an indemnification provision for information technology (“IT” or “technology”) or technology-enabled agreements.  

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