Indemnity Clauses: Do They Really Work? ("Minnesota Law, Presented by Moss & Barnett")

One of the foundational principles of our legal system is the concept of indemnity, by which one party agrees to pay another for an anticipated loss or to prevent him or her from suffering other legal consequences. Many contracts are written with a clause that provides for indemnity between the parties. In fact, all insurance policies are, in the end, agreements to provide indemnity to the policy holder. Curt Smith describes how indemnity works under the legal disciplines of contract, tort, and insurance law.