An indemnification agreement is a kind of an agreement which is formed when a person or party takes the financial responsibility of another person or party as far as a certain category of financing is concerned. Indemnification basically means being secured or protected from a certain cost payment by shifting the responsibility of the obligation to pay to another party. A good example of this can be in the case of a medical insurance where the medical costs or charges to be paid by a person are partially paid by the insurer.
An indemnification agreement consists of the details of the involved parties, for example- the insurer and the insured person, the details of the insurance or indemnification and the terms and conditions of the agreement. The terms and conditions of any such agreement is the main part of such an agreement as they are legally applicable and are a must to be followed by the involved parties.
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