What's Happening?
A recent article by Mark Shutt discusses the critical importance of evaluating the application and enforceability of contractual indemnity and additional insured obligations. These legal mechanisms can
significantly transfer risk and exposure from an indemnitee and its insurers to an indemnitor and its insurers. The article provides a framework for conducting such an analysis, emphasizing the need for proper evaluation to prevent or facilitate the transfer of risk.
Why It's Important?
Understanding and properly evaluating contractual indemnity and insurance obligations are crucial for legal practitioners and businesses involved in drafting and enforcing contracts. These obligations can have significant financial implications, potentially shifting substantial risk and liability. For businesses, this understanding can prevent unexpected financial burdens and ensure that risk is appropriately managed. For legal professionals, it provides a basis for advising clients on risk management and contract negotiation strategies.
