Glossary → Contracts
Contracts

Indemnification Clause

A promise to cover the other party’s losses or legal costs in defined situations.

An indemnification clause shifts risk: one party agrees to pay for certain losses, claims, or legal costs the other party incurs. A broad, one-sided indemnity can leave you responsible for costs far larger than the deal itself.

In practice

“You agree to indemnify and hold harmless the Company from any claims arising out of your use of the service.”

Don’t just look it up — see it in your document.

Before you sign, Main AI reads the actual contract and flags where a clause like this shifts risk onto you — in plain language, tied to the exact wording.

Analyze my document free →

How to read an indemnification clause

Check three things: how broad the trigger is (“any claim” is very broad), whether it runs one way or both, and whether it is capped. A mutual, capped indemnity tied to your own fault is normal; an uncapped one-way indemnity for “any” claim is where the real exposure hides.

See this in your own document: run a free analysis — findings quote the exact language.

What it looks like in a real document

“Customer shall indemnify, defend, and hold harmless Provider from and against any and all claims, damages, and expenses of any kind.”

“Any and all” with no cap and no fault requirement is the version to negotiate — ask for a cap, a carve-out for the other side’s negligence, and a limit to third-party claims.