Businesses, individuals and organizations use indemnity forms to outline and record details involving financial responsibilities every day. Insurance policies are one example of indemnity agreements.
In the case of accident insurance, the insurance company agrees to take financial responsibility for claims or costs according to the policy’s terms. The indemnity agreement protects the insured against future costs related to accidents as it shifts responsibility or liability to the insurance company.
Indemnity agreements are often used as part of leases. Landlords may have tenants sign indemnity forms stating that they are not responsible for damages or medical costs a tenant incurs as the result of injuries while residing at their property. An indemnity clause would usually also be included in this type of agreement, whereby the landlord guarantees to maintain the leased building and property in safe condition.
This is just one example of how indemnity agreements are used to outline both landlords’ and tenants’ financial responsibilities and obligations. Indemnity agreements are also used to protect homeowners against potential lawsuits due to accidents when contracting work is being done. Businesses involved in trading stocks and bonds may use an indemnity agreement to prevent clients from holding them liable for monetary losses.
Any time it is important to outline financial responsibility between two parties involved in a transaction or contract, indemnity forms should be used. You can obtain indemnity forms specific to your state online at very affordable prices. A small investment in indemnity forms today could end up saving you a fortune in the long run.