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What's an "indemnity clause"?

By Gillian Bristow, Special Counsel - Cooper Grace Ward Lawyers

You've probably heard the term but never asked - What's an "indemnity clause"?

An indemnity is a device used to manage risk. Where one party can hold another party to any loss or damage to their goods. It makes sense that transport contacts will contain these clauses, as for the period of time you are transporting another company’s goods, they will be in your possession and subject to potential damage from you.

It’s also important you know, when transport contracts cast a very wide indemnity clause over your operations, you may be responsible for someone else's negligence. In these cases, it’s critical you have a lawyer and insurance broker look over your contract to identify how wide the indemnity clause is and whether they’re likely to affect your insurance coverage.

We asked our expert, Gillian Bristow, what truck owners and operators should know about indemnity - especially those transporting goods for a third party.

Gillian has also broken down the meaning of Liens and how they can be used by transport companies to secure the payment of a debt.

For more practical advice and insights into the transport industry, head over the Truck Assist Blog.

Did you know some indemnity clauses could make you responsible for someone else's negligence.

Gillian Bristow, Special Counsel - Cooper Grace Ward Lawyers
Gillian is a special counsel in Cooper Grace Ward’s transport and logistics team and has practised in the transport sector for more than 25 years. Gillian acts for a wide variety of transport and logistics clients across all