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I’m finalizing a contract with a new client and they’ve included a clause about indemnification. I’m trying to understand what exactly I’d be agreeing to protect them from, and whether my general liability insurance would even cover that kind of scenario.

That indemnification clause usually means you’ll cover third party claims arising from your work, including defense costs and settlements, even if you were not negligent.

Our GL policy covers bodily injury and property damage, not these indemnity obligations, and it won’t automatically pay for defense costs tied to that clause.

We asked to carve out willful misconduct and gross negligence, and to cap the exposure.

If the clause jumps into IP or data breach claims, GL won't cover those.

We tried mutual indemnity and felt it was fairer.

I had a claim once and the client had to defend it, and it showed how messy the process can be.

One question for you do you really have a problem here or is it just the way they phrase it?

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