Who does an indemnity clause protect in a contract?

How does an indemnity clause work?

The clause names who is responsible (the indemnitor) and who is protected (the indemnitee). If a covered event happens, the indemnitor agrees to pay for damages, legal costs, or claims—most commonly from third-party claims (for example, when someone outside the contract files a lawsuit).

For example, if you agree to indemnify a client, you may cover third-party claims caused by your services. If the client indemnifies you, they may cover claims related to their pet or information they provided.

Can it protect both parties?

Yes, many contracts include mutual indemnity clauses. This means each party protects the other from risks they control.

In your case, this could mean you cover issues caused by your handling of the pet, while the client covers risks tied to the pet's behavior or undisclosed history.

What to do next...

1. Check who is listed as the indemnifying party.
2. Review what types of claims are covered.
3. See if the clause is one-sided or mutual.
4. Make sure the risks match your actual services.

What to consider in your specific situation

While indemnity clauses are common, how they protect you depends on your services and risks.

• The behavior and history of the pets you handle.
• What information clients provide (or fail to provide).
• The exact wording of the indemnity clause.
• Whether the clause is mutual or one-sided.
• Local laws that affect enforceability.
• The level of risk in your training or care activities.

A well-written indemnity clause can help allocate risk clearly between you and your clients. Since every situation is different, consider more information through Rocket Copilot, a Legal Pro, or a legal document review to move forward with confidence.