The Law of Indemnification and Its Interplay with Liability Insurance

Indemnity is compensation given to make another whole from a loss already sustained. Contractual indemnity, on the other hand, is that which is voluntarily given as security or protection to prevent his or her suffering damage. But this contractually created indemnity has potential implications on another important form of contractual indemnity: the liability insurance policy. The ultimate question is whether the indemnity agreement is enforceable and what impact it has on the insurance obligati