When does Meharry require an indemnity provision in a contract?
Like proof of insurance, Meharry requires an indemnity provision in a contract anytime the work to be performed under the contract poses any risk of injury to people or property. When a party agrees to “indemnify” another party in a contract, it means that it agrees to pay for any damages the that the other party may suffer if it gets sued. Using the tree service example, if the tree service makes a mistake and the tree falls on a nearby car, the owner may very likely sue both the tree service and Meharry (since Meharry hired the tree service). If the contract between Meharry and the tree service provided for indemnity, Meharry would know that if the owner’s lawsuit resulted in a judgment against Meharry, the tree service would pay for the judgment. And if Meharry had proof of insurance, it would know that the tree service had insurance coverage to pay Meharry for the indemnity. Thus, indemnity and insurance work hand-in-hand.
