Short answer: An indemnity forces the vendor to spend money defending the customer on a mere allegation, with very few defenses, while a breach of contract claim puts the cost and the burden of proof on the customer. That is why customer paper is full of indemnities. When negotiating a
Short answer: your software infringement indemnity should cover only your software, not your software combined with the customer’s or a third party’s technology. In AFLAC v. Intervoice, the vendor owed no indemnity because the infringement claim arose from that combination. This is what to know about the “combination exception” to
Short answer: insurance is a form of indemnity, a way to shift risk by contract. A SaaS company should carry commercial general liability, workers’ compensation, auto, and umbrella coverage, but most important is technology insurance (data breach, bug/glitch, and errors and omissions), because standard policies do not cover intangible losses
Short answer: when a customer asks you to indemnify them, remember four things. An indemnity is really an insurance policy you are writing, the standard IT version is an infringement indemnity, there is no one-size-fits-all wording, and who hires the defense lawyer matters a lot. This may not be the
Get started with a free initial consultation—fill out the form below to connect with our experts today!