An add-on to your insurance policy that provides extra benefits or changes coverage. Riders allow you to customize your policy to better match your needs.
What to consider
Read the clause carefully to understand your liabilities.
Negotiate terms that fairly allocate risk.
Consult a legal advisor if any part seems unclear.
Real world scenarios
When a contractor accidentally damages property during a renovation, the indemnity clause in the contract requires him to cover the cost.
A software vendor’s contract includes an indemnity clause protecting the client from legal claims arising from data breaches.
An event organizer signs a contract with an indemnity clause to cover any accidental injuries during the event.