How do I push back on unfair insurance and indemnity terms?

• Identify the issue. Look for high coverage limits, broad indemnity language, or one-sided risk.
• Offer fair options. Suggest lower insurance limits, mutual indemnity, carve-outs for the other party’s negligence, or caps on liability.
• Check related clauses. Some contracts also include “additional insured” or “waiver of subrogation” requirements — these can greatly affect costs and liability and are often negotiable.
• Know the rules. In some industries or government contracts, insurance minimums are set by law or regulation and can’t be changed. Verify whether limits are regulatory or flexible before pushing back.
• Put it in writing. Once you agree on changes, make sure they’re clearly written into the contract.

Propose language the other party can accept, and confirm the final version in writing. Smart negotiation isn’t being difficult—it’s protecting your business.

What to consider in your specific situation

While these tips apply broadly, your best approach depends on several factors.

• The type of contract and business relationship involved.
• The specific wording of the insurance or indemnity clauses.
• Applicable state laws or industry standards.
• Your leverage or bargaining power in the deal.
• The overall risk exposure for your business.

Since every situation is different, you can use Rocket Copilot or request a Legal Pro review to get more information about how to correct your agreement and confirm it reflects your current business setup.