Subcontractor Indemnity Clause Sample: Protecting Your Business

As a business owner, it is important to ensure that your business is protected from any legal liabilities that may arise from the actions of your subcontractors. One way to do this is through the use of a subcontractor indemnity clause.

A subcontractor indemnity clause is a contractual provision that requires the subcontractor to indemnify and hold harmless the principal contractor from any losses, damages, or liabilities that may arise from the subcontractor`s work. This ensures that the subcontractor is responsible for any damages or lawsuits that may arise from their work, rather than the principal contractor.

Here is a sample subcontractor indemnity clause:

«Subcontractor agrees to indemnify and hold harmless Principal Contractor, its directors, officers, employees, and agents from any and all claims, damages, liabilities, and expenses (including reasonable attorneys` fees) arising out of or in connection with the performance of Subcontractor`s services under this Agreement. Such indemnification shall extend to any claims or liabilities arising out of or in connection with the negligence or willful misconduct of Subcontractor or its employees, agents, or subcontractors.»

This clause ensures that the subcontractor takes responsibility for any damages or lawsuits that may arise from their work, including those resulting from their negligence or willful misconduct. It also protects the principal contractor from any financial losses that may result from such claims.

When drafting a subcontractor indemnity clause, it is important to ensure that it is specific and covers all potential liabilities that may arise from the subcontractor`s work. It should also be clear and easy to understand for both parties involved.

In addition to the indemnity clause, it is recommended that the principal contractor also require the subcontractor to provide proof of insurance coverage. This can include general liability insurance, workers` compensation insurance, and professional liability insurance.

In conclusion, a subcontractor indemnity clause is an important protection for any business that hires subcontractors. It ensures that the subcontractor is responsible for any damages or legal liabilities that may arise from their work, rather than the principal contractor. When drafting such a clause, it is important to be specific and clear about the potential liabilities and to require proof of insurance coverage from the subcontractor.