* The Significance: Insurers are now exposed to indemnifying
otherwise uncovered settlements and judgments if they are found to have wrongfully refused to defend a covered claim.
These assumptions will affect the fair value of the indemnification, but do not change the amount owed by the reporting entity (i.e., the indemnifying
party) to the third party.
The simplest indemnification provision provides that one party, formally called the indemnitor or indemnifying
party, will reimburse or compensate the other party, called the indemnitee or indemnified party, for damage or loss incurred in connection with the underlying contract and attributable to the indemnitor's actions.
The recent Bata case demonstrates that the courts will impose serious fines and penalties on officers and directors who do not comply with environmental legislation, and will even go so far as prohibiting corporations from indemnifying
the directors against these fines.
Confidence that the abatement company will be capable of indemnifying
the owner should also be an important factor in making your selection.
In a contract that only requires the group to make payments, however, there is little risk that the actions of the group will give rise to an indemnify event, and a greater likelihood that group will be entitled to receive the indemnifying
payments based upon the actions of services provided by the vendor.
Insurers of those entities have spent billions of dollars defending and indemnifying
those insureds who dealt with asbestos.
Anthony Barnett, the Assistant Auditor General for Wales and Appointed Auditor of Carmarthenshire County Council, issued a public interest report saying the authority had acted unlawfully in indemnifying
chief executive Mark James' libel counter claim against blogger Jacqui Thompson.