An indemnification agreement is also known as a ''hold harmless agreement. '' This is a document put in use to protect an individual or business from legal action. In the agreement, a party agrees to pay (''indemnitor'') for any liability incurred by a second party (''the indemintee''). You may use this type of document when you decide to let someone use your company's vehicle, and you want to protect yourself from a lawsuit should they cause damage to another's property. This agreement is often used for financial responsibilities.
Indemnity means to hold someone harmless for an action. By using this agreement, a party is not responsible for incidents or damages they did not cause. The document can hold a party free from legal action, fees, claims and losses. They are often used in insurance contexts.
Some parties may be considered high risk, and thus an indemnity agreement holds another party harmless. When renting an apartment, a renter may sign an agreement to not hold their landlord legally responsible in the event they were injured on the landlord's property. There may be additional clauses about negligence, state of governing law, and the scope of the activity an agreement covers.