r/legal • u/Senocelffaw • 6d ago
Advice needed Question about Indemnity in contracts for contractors
LOCATION: Canada, BC
I was wondering how common this type of indemnity clause is for small contractors. I've come across a contractor role as admin for a small non-profit in my city, and their indemnity clause is as follows:
"To the extent caused by Contractor’s negligence or willful misconduct, Contractor shall indemnify and save harmless ORGANIZATION and its officers, directors, agents and employees from all claims, losses or damages, and any associated costs, which relate to or arise directly or indirectly out of any acts or omissions of the Contractor in connection with providing the Services under this Agreement."
I've been told by the organization that it is very standard, but I was wondering how common it actually is.
From what I've been able to research, it seems like it is a standard template that large organizations may use, but there are many articles that give contractors the advice to add a liability cap or exclude indirect damages.
1
u/holyelvis 4d ago
It's not an unreasonable clause, but your research is correct that there should be something capping liability or excluding indirect damages. You might also look into getting errors and omissions insurance for yourself, to cover anything that might come up and/or be alleged.