Indemnification - Physician Contract Glossary

Indemnification

Definition

A contractual promise to pay or reimburse another party for certain losses, damages, or legal fees related to specified claims or incidents.

Examples in Context

“Physician agrees to indemnify Employer for losses arising from Physician's negligence, errors, or omissions in the performance of duties.”

“Employer shall indemnify Physician against claims resulting from Employer’s business operations.”

Implications for Physicians

• Personal financial risk if indemnification clauses extend beyond professional liability coverage.
• Indemnification could require you to pay legal fees, settlement costs, or damages.

Negotiation Tips

• Request that indemnification clauses exclude insured claims.
• Ask for mutual indemnification or a narrower definition of the events covered.
• Negotiate a cap on indemnification obligations to limit financial exposure.

Red Flags and Pitfalls

• Vague indemnification language that covers unpredictable or undefined risks.
• One-sided indemnification clauses that only protect the employer.
• Indemnification terms requiring payment for incidents outside your control.

Related Terms

• Professional Liability Insurance
• Self-Insurance Coverage

FAQs

• “Does my professional liability insurance cover indemnity claims?”
  • It often does, but limits vary. Confirm with your insurer if indemnification costs are covered.
• “Can I refuse an indemnification clause?”
  • Yes, you can negotiate to limit or remove indemnification if it's excessive or one-sided.
• “What if the employer is at fault?”
  • You should not be required to indemnify the employer for their own negligence or misconduct.

Legal Disclaimer

The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.

For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.

You can find experienced legal professionals through our Physician Contract Lawyer Directory.