Common use of Practice Areas Clause in Contracts

Practice Areas. Commercial and Technology Contracts Corporate incurred by the other party arising out of the agreement. Depending on the nature of the transaction, it may be appropriate and reasonable to make the indemnity provisions mutual and reciprocal so as to protect both parties from claims attributable to the other party. In many instances, the indemnity provisions might also require a party to carry certain types of insurance to cover or help fund that party’s indemnification obligations, which generally include naming the other party as an "additional insured" under such insurance policies and also requiring the insurer to waive subrogation rights against the other party so as to not defeat the purpose of the indemnification provision. If the indemnification obligations are made mutual and reciprocal, both parties should be required to name the other party as an "additional insured" on their respective insurance policies and also have their insurer waive subrogation rights against the other party.