Indemnification hereunder not exclusive: Overview, definition, and example
What does "Indemnification hereunder not exclusive" mean?
"Indemnification hereunder not exclusive" refers to a provision in a contract or agreement that specifies that the indemnification provided in that agreement is not the only form of protection available to the indemnified party. This means that even if one party provides indemnification (such as covering legal costs, damages, or losses), the indemnified party can still seek other forms of compensation or remedies through other agreements, legal rights, or actions.
In simpler terms, it ensures that indemnification rights are in addition to any other legal protections or remedies the indemnified party may have, and do not limit them to just the indemnification clause in the agreement.
Why is "indemnification hereunder not exclusive" important?
This provision is important because it ensures that indemnified parties are not restricted to relying solely on one source of protection or compensation. It provides flexibility, allowing the indemnified party to seek additional remedies from other sources, such as insurance policies, other contractual agreements, or legal claims.
For businesses, this provision offers broader protection in case of liability, as it ensures that indemnification rights under the contract do not override other avenues for recourse. It helps mitigate risk by ensuring that indemnified parties are fully protected from potential losses or damages.
Understanding "indemnification hereunder not exclusive" through an example
Imagine a business enters into a contract with a supplier. The contract includes an indemnification clause where the supplier agrees to cover legal costs and damages if the supplier’s products cause harm to the business. However, the contract also includes a provision stating that "indemnification hereunder not exclusive." This means that, in addition to the supplier's indemnification, the business could also file a claim with its own insurance provider for the same damages, or seek other legal actions if necessary. The indemnification clause does not limit the business to only the supplier’s coverage.
In another example, a contractor might sign an agreement that includes indemnification provisions to protect against claims from third parties. The contractor could still pursue additional remedies, such as seeking compensation from a subcontractor or claiming insurance, ensuring that they are not restricted to just the indemnification terms set forth in the contract.
An example of an "indemnification hereunder not exclusive" clause
Here’s how an "indemnification hereunder not exclusive" clause might appear in a contract:
“The indemnification provisions contained in this Agreement are not exclusive, and the indemnified Party retains the right to seek additional remedies or compensation from other sources, including but not limited to insurance, other contractual agreements, or legal claims, in the event of loss or damages.”
Conclusion
"Indemnification hereunder not exclusive" is a provision in contracts that ensures indemnification rights are in addition to, not a replacement for, other forms of legal protection or remedies. This clause provides flexibility and broader protection for indemnified parties, allowing them to seek compensation or legal recourse through multiple channels if necessary. For businesses, it enhances security by ensuring that indemnification does not limit access to other forms of financial or legal relief.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.