We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is an Indemnity Agreement?

Tricia Christensen
Updated May 23, 2024
Our promise to you
Language & Humanities is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At Language & Humanities, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

An indemnity agreement is one in which financial responsibility is decided. For example, a contract for medical insurance is an indemnity agreement. In it, the insurer agrees to pay certain medical costs as defined by the contract. Thus some financial responsibility for medical bills now belongs to the insurer. The insured on the other hand, is indemnified, or exempt from paying certain costs as outlined by his or her policy.

Indemnification is the act of being held not liable or being protected from costs by shifting them to another party. Certain actions almost always include an indemnity agreement. Tenants signing a lease often agree to indemnify the owner of the property from costs or damages associated with being harmed on the property. This indemnity agreement normally has an additional clause that states the property owner must fix anything that could be potentially dangerous.

Thus a landlord would be indemnified from damages if a tenant tripped and fell down the stairs. However, if the stairs were in disrepair, and this matter had been brought to the attention of the landlord, an indemnity agreement would not prevent the renter from suing for damages if the disrepair caused the accident.

Tenants usually further agree to be held responsible for costs if the property is damaged. Agreeing to clean the carpets or flea bomb an apartment upon vacating the property is an indemnity agreement that protects the property owner. Deposits may be not be returned when a tenant fails to meet obligations stated in an indemnity agreement.

Sometimes an indemnity agreement is signed when people use a company to invest in stocks or bonds trading. In order to use the company’s services, the investing person agrees to hold the company not liable for any money losses that might be incurred by investing.

Occasionally one uses an indemnity agreement when intellectual property is leased. This is much like the tenant indemnification agreement. The holder of the intellectual property seeks exemption for any damages incurred by the person using the property. The leaser also agrees to take on any lawsuits that result from his or her use of the property.

Another type of indemnity agreement is harder to enforce. If you have ever been to an amusement park, you might note the ticket contains fine print about you riding rides at your own risk. The goal, of course, is to indemnify the park against a person suing for damages if injured on a ride. This seldom works, because technically, you have not signed an agreement. Most people hurt on an amusement park ride are able to sue for damages quite successfully.

Other leisure activities that might have you signing an indemnity agreement are things like skydiving and parasailing. Most companies will not allow you to participate in such activities unless you actually sign an indemnity agreement that holds them not liable for injury to yourself or death. In truth, most companies that offer somewhat dangerous leisure activities could not remain solvent without such an agreement.

Language & Humanities is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Tricia Christensen
By Tricia Christensen
With a Literature degree from Sonoma State University and years of experience as a Language & Humanities contributor, Tricia Christensen is based in Northern California and brings a wealth of knowledge and passion to her writing. Her wide-ranging interests include reading, writing, medicine, art, film, history, politics, ethics, and religion, all of which she incorporates into her informative articles. Tricia is currently working on her first novel.
Discussion Comments
By anon178524 — On May 21, 2011

I am assigning to a remaining seven years' lease of a business the landlord wants to release the present lessee of all his obligations and wants me to indemnify the lease. I am reluctant to do that.

By anon59598 — On Jan 09, 2010

I have two indemnity accounts which are in my children's names but I am the trustee. I have been told I cannot withdraw funds on it as there is a clause to be held for the child til age 25.

Is there any way of getting around or out of this as I need funds due to economic situation? Thanks.

By anon36719 — On Jul 14, 2009

does a signed indemnification agreement expire at any point?

By anon2083 — On Jun 27, 2007

Hi, I am in the process of buying a property and the building permission for an extension and removal of a supporting wall have been lost. The owner has taken out an indemnity against any problems, could you tell me if this is a safe option or is there as better option.

By kaytiealice — On Apr 19, 2007

i am selling my house and it is due to be exchanged in 7 days, but now they have said they want me to take out an indemnity policy, i am legally required to do so

Tricia Christensen
Tricia Christensen
With a Literature degree from Sonoma State University and years of experience as a Language & Humanities contributor,...
Learn more
Language & Humanities, in your inbox

Our latest articles, guides, and more, delivered daily.

Language & Humanities, in your inbox

Our latest articles, guides, and more, delivered daily.