An indemnity holder is the party who is entitled to receive compensation from the indemnifier in case of any loss, damage, or liability. The rights of an indemnity holder generally depend on the terms of the indemnity agreement and the governing law.
Common Rights of an Indemnity Holder
- Right to compensation: The primary right of an indemnity holder is to receive compensation from the indemnifier in case of any loss, damage, or liability. The indemnity holder has the right to recover the amount of the loss suffered, as well as any expenses or costs incurred as a result of the loss.
- Right to notice: The indemnity holder has the right to receive notice of any claims or actions against them that may give rise to a claim for indemnity. The indemnifier is generally required to provide prompt notice of any such claims or actions, so that the indemnity holder can take appropriate measures to protect their rights.
- Right to control the defense: In some cases, the indemnity holder may have the right to control the defense of any claims or actions that give rise to a claim for indemnity. This means that the indemnity holder may be able to choose their own attorneys and experts to represent them in the proceedings.
- Right to enforce the indemnity: The indemnity holder has the right to enforce the indemnity agreement against the indemnifier, in case the indemnifier fails to fulfill their obligations. This may include filing a lawsuit to recover the compensation owed under the indemnity agreement.
- Right to indemnity from third parties: In some cases, the indemnity holder may have the right to seek indemnity from third parties who may be responsible for the loss or damage suffered. This may include claims against contractors, suppliers, or other parties who may have contributed to the loss.
