Indemnity Agreement Cost

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 4,123 reviews

Jump to Section

Need help with an Indemnity Agreement?

Post Project Now

Post Your Project (It's Free)

Get Bids to Compare

 Hire Your Lawyer

What does an indemnity agreement cost? Business owners often ask who needs liability protection due to their business practices. Let’s explore this question and review some general information about indemnity agreements and how they work.

How Much Does an Indemnity Agreement Cost?

An indemnity agreement, sometimes called a hold harmless agreement or release of liability agreement, is a legally binding contract between two parties in which one party agrees to absolve the other party from responsibility for any damages or injuries related to a specific action or job.

Indemnity agreements are most often used by businesses that provide a service to customers that carry a risk of injury or damage. By signing an indemnity agreement, the customer is acknowledging the risks and agreeing to release the business from any liability for injuries or damages that may occur.

For example, a skydiving company will make customers sign an indemnity agreement before they are allowed to skydive. The agreement will inform the customer that they are about to participate in a dangerous activity that could lead to injury or death.

Once the customer signs the agreement, they have relinquished their rights to sue the skydiving company if they are injured during the activity.

The two main types of indemnity agreements are unilateral indemnity agreements and reciprocal indemnity agreements.

  1. Unilateral Indemnity Agreement. One party agrees to release the other party from liability for injuries or damages.
  2. Reciprocal Indemnity Agreement. Both parties agree to absolve each other of liability for injuries or damages.

Indemnity agreements are important documents used to protect a business from costly lawsuits. For this reason, many business owners choose to hire an attorney to draft their indemnity agreement.

An attorney will ensure that the indemnity agreement includes all necessary terms and conditions and abides by state laws that govern these types of contracts.

Based on ContractsCounsel’s marketplace data, the average cost of a project involving an indemnity agreement is $575.00.

What’s Typically Included in an Indemnity Agreement

Indemnity agreements can be customized for businesses based on their services and the type of activity the contract covers. As a result, indemnity agreements are found in many industries, from construction to rental car services to extreme sports.

Despite the differences, all indemnity agreements should include the following key components:

Although they may differ, most hold harmless agreements will contain the following key elements:

  • Indemnification clause. This is the center of the entire agreement and the most important clause. The indemnification clause states the acts that the business will be indemnified against. This section needs to be unambiguous to be legally binding.
  • Scope. The scope defines the extent of protection the business can claim under the contract.
  • Governing law. Every state has different laws and standards surrounding indemnity agreements. Therefore, the contract should state which state law will govern the agreement.
  • Duration. The duration states how long the rights and obligations of the contract will exist between the parties.

Depending on your business and the covered activity, your indemnity agreement may need additional and more detailed clauses. Your contract lawyer will know what to include to protect you from liability.

What are the Exceptions to an Indemnity Agreement?

Indemnity agreements are crucial tools for businesses that offer services that carry risk. However, a business owner needs to understand that indemnity agreements are not catch-all contracts that completely absolve liability.

The following situations are usually ruled as exceptions to indemnification:

  • The business acts with negligence or gross negligence
  • The business committed a criminal offense
  • The business acted in bad faith or unreasonably
  • The business benefitted from the act or will receive compensation

Exceptions and the enforceability of an indemnity agreement will differ by state and jurisdiction.

Meet some lawyers on our platform

Gregory F.

4 projects on CC
View Profile

Rebecca L.

2 projects on CC
View Profile

Michael M.

183 projects on CC
View Profile

Ralph S.

2 projects on CC
View Profile

Examples of Indemnity Agreement Projects

Indemnity Agreement Drafting

Indemnity agreements are important documents, and they must be drafted correctly. A business owner should always hire an experienced attorney for help with an indemnity agreement.

Indemnity agreements are challenging to enforce. For example, suppose the agreement is ambiguous or lacks critical clauses. In that case, the court will often favor the customer who signed the agreement rather than the business looking to be released from responsibility.

An experienced lawyer will know how to draft an unambiguous agreement with detailed terms and conditions. A comprehensive indemnity agreement can differentiate between liability protection and a costly lawsuit.

Indemnity Agreement Review

Indemnity agreement templates can easily be found online, so some business owners may be tempted to draft their agreements. While this is possible, it is always recommended that a business owner has their agreement reviewed by a licensed attorney.

The laws governing indemnity agreements vary by state. A template may not account for your state’s unique laws. When you hire an attorney to review your agreement, they will ensure it is detailed enough, customized to your business practices, and abides by state laws.

Indemnity Agreement Drafting Costs

Hiring an attorney to draft an indemnity agreement will incur legal fees. However, the lawyer will use their time and expertise to provide valuable legal services to their client.

ContractsCounsel’s marketplace data shows the average indemnity agreement drafting costs are $600.00 across all states and industries.

Indemnity Agreement Review Costs

Review services will also incur legal fees. Like drafting services, review services take a licensed attorney's time and legal expertise.

According to ContractsCounsel’s marketplace data, the average indemnity agreement review costs are $550.00 across all states and industries.

How Do Lawyers Charge for Indemnity Agreements?

Hourly Rates for Indemnity Agreements

Contract lawyers specializing in drafting indemnity agreements can charge for their services in a few different ways. First, all types of lawyers commonly use hourly rate fee agreements. Under this fee agreement, the lawyer charges a client for time spent on a project or case using a predetermined hourly rate.

This fee structure ensures that lawyers are paid for all their time spent on a case – even if the case takes longer than expected. Clients benefit from not having to pay for legal services until the end of the project. However, they won’t know the total cost of their legal fees until they receive their bill.

ContractsCounsel’s marketplace data shows the average hourly rate for an indemnity agreement lawyer ranges from $200 - $350 per hour.

Flat Fee Rates for Indemnity Agreements

Lawyers use flat fee rates as another common fee structure, especially when hired for a specific task like drafting an indemnity agreement. When a lawyer uses a flat fee billing structure, they quote their client a single fee for the entire project's cost.

The benefit of a flat fee rate structure is that the client knows the total cost of their legal project before agreeing to hire the attorney. The downside is that many lawyers require flat fee rates to be paid upfront before beginning work.

According to ContractsCounsel’s marketplace data, the average flat fee rate for an indemnity agreement is $575.00.

Get Help with an Indemnity Agreement

Do you need help with an indemnity agreement project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from business lawyers to handle your project. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

Michael B. on ContractsCounsel
View Michael
5.0 (10)
Member Since:
October 30, 2020

Michael B.

Free Consultation
13 Yrs Experience
Licensed in IL, MN, WI
University of the Pacific

Michael has extensive experience advising companies from start-ups to established publicly-traded companies . He has represented businesses in a wide array of fields IT consulting, software solutions, web design/ development, financial services, SaaS, data storage, and others. Areas of expertise include contract drafting and negotiation, terms of use, business structuring and funding, company and employee policies, general transactional issues as well as licensing and regulatory compliance. His prior experience before entering private practice includes negotiating sales contracts for a Fortune 500 healthcare company, as well as regulatory compliance contracts for a publicly traded dental manufacturer. Mr. Brennan firmly believes that every business deserves a lawyer that is both responsive and dependable, and he strives to provide that type of service to every client.

Brad H. on ContractsCounsel
View Brad
5.0 (5)
Member Since:
November 6, 2020

Brad H.

Free Consultation
Raleigh, NC
11 Yrs Experience
Licensed in NC
University of North Carolina

Brad is a business attorney with experience helping startup and growing companies in a variety of industries. He has served as general counsel for innovative companies and has developed a broad knowledge base that allows for a complete understanding of business needs.

Matthew R. on ContractsCounsel
View Matthew
5.0 (2)
Member Since:
November 6, 2020

Matthew R.

Free Consultation
Denver, Colorado
16 Yrs Experience
Licensed in CO, OH
Case Western Reserve University

I am an attorney located in Denver, Colorado with 13 years of experience working with individuals and businesses of all sizes. My primary areas of practice are general corporate/business law, real estate, commercial transactions and agreements, and M&A. I strive to provide exceptional representation at a reasonable price.

George O. on ContractsCounsel
View George
4.9 (4)
Member Since:
November 2, 2020

George O.

Managing Attorney
Free Consultation
Houston, Texas
16 Yrs Experience
Licensed in TX
South Texas College of Law

George is a lifelong Houston resident. He graduated from St. Thomas High School and then Texas A&M University. He obtained his Doctor of Jurisprudence from South Texas College of Law in 2007. He is experienced in real estate, estate planning & probate, civil/commercial matters, personal, injury, business matters, bankruptcy, general counsel on-demand, and litigation. He is active in the community serving as past-president of the St. Thomas Alumni Board, a current member of the Dads Club Aquatic Center Board of Directors, current member of the Dickinson Little Italy Festival of Galveston County Board of Directors, and former PTO President for Briarmeadow Charter School.

Ramsey T. on ContractsCounsel
View Ramsey
4.9 (5)
Member Since:
November 3, 2020

Ramsey T.

Founding Partner
Free Consultation
New York
26 Yrs Experience
Licensed in NY
William and Mary

My clients are often small and medium size technology companies, from the "idea" stage to clients who may have raised a round or three of capital and need to clean up a messy cap table. I help with all legal matters related to growth that keep founders up at night - hiring people, allocating equity, dealing with shareholders and investors, client negotiations and early litigation counseling (before you need a litigator). I've seen a lot, and because I run my own business, I understand the concerns that keep you up at night. I’ve been through, both on my own and through other clients, the “teething” pains that will inevitably arise as you scale-up – and I’m here to help you. I have over 20 years international experience devising and implementing robust corporate legal strategies and governance for large multinationals. I now focus on start-ups and early/medium stage technology companies to enable a sound legal foundation for your successful business operations. Many of my clients are international with US based holding companies or presences. My 17 years abroad helps me "translate" between different regimes and even enabling Civil and Common Law lawyers to come together. Regularly, I handle early stage financings including Convertible Notes, Seed and Series A/B financings; commercial and technology contracts; international transactions; tax; mergers and acquisitions.

Ross F. on ContractsCounsel
View Ross
Member Since:
October 27, 2020

Ross F.

Managing Partner
Free Consultation
Bedford, New Hampshire
12 Yrs Experience
Licensed in MA, NH
University of Arizona

I am an experienced technology contracts counsel that has worked with companies that are one-person startups, publicly-traded international corporations, and every size in between. I believe legal counsel should act as a seatbelt and an airbag, not a brake pedal!

John H. on ContractsCounsel
View John
Member Since:
November 11, 2020

John H.

Free Consultation
Mobile, AL
12 Yrs Experience
Licensed in AL
Thomas Goode Jones School of Law

John Daniel "J.D." Hawke is an experienced attorney with a law practice in Mobile, Alabama. He was born in Fairhope, Alabama and after earning his undergraduate degree at Auburn University, he received a law degree from Thomas Goode Jones School of Law in 2010. After law school, he formed the Law Office of J.D. Hawke LLC and over the last decade he has fought incredibly hard for each and everyone of his clients. His practice focuses on representing people facing criminal charges and clients dealing with family law matters. In addition to criminal defense and domestic relations cases, he also regularly handles contract disputes, personal injury cases, small business issues, landlord/tenant disputes, document drafting, and estate planning. He is licensed to practice law in the State of Alabama and the United States District Court for the Southern District of Alabama.

Thomas C. on ContractsCounsel
View Thomas
Member Since:
October 30, 2020

Thomas C.

Free Consultation
Denver, CO
10 Yrs Experience
Licensed in CO
University of Colorado Law School

Thomas Codevilla is Partner at SK&S Law Group where he focuses on Data Privacy, Security, Commercial Contracts, Corporate Finance, and Intellectual Property. Read more at Thomas’s clients range from startups to large enterprises. He specializes in working with businesses to build risk-based data privacy and security systems from the ground up. He has deep experience in GDPR, CCPA, COPPA, FERPA, CALOPPA, and other state privacy laws. He holds the CIPP/US and CIPP/E designations from the International Association of Privacy Professionals. Alongside his privacy practice he brings a decade of public and private transactional experience, including formations, financings, M&A, corporate governance, securities, intellectual property licensing, manufacturing, regulatory compliance, international distribution, China contracts, and software-as-a-service agreements.

Lyndsey G. on ContractsCounsel
View Lyndsey
Member Since:
October 31, 2020

Lyndsey G.

Free Consultation
Roseville, MN
9 Yrs Experience
Licensed in MN
Mitchell Hamline College of Law

Attorney of 6 years with experience evaluating and drafting contracts, formation document, and policies and procedures in multiple industries. Expanded to estate planning last year.

Sammy N. on ContractsCounsel
View Sammy
Member Since:
November 4, 2020

Sammy N.

Free Consultation
Raleigh, NC
4 Yrs Experience
Licensed in NC
Campbell University School of Law

Sammy Naji focuses his practice on assisting startups and small businesses in their transactional and litigation needs. Prior to becoming a lawyer, Sammy worked on Middle East diplomacy at the United Nations. He has successfully obtained results for clients in breach of contract, securities fraud, common-law fraud, negligence, and commercial lease litigation matters. Sammy also counsels clients on commercial real estate sales, commercial lease negotiations, investments, business acquisitions, non-profit formation, intellectual property agreements, trademarks, and partnership agreements.

Christopher S. on ContractsCounsel
View Christopher
Member Since:
November 6, 2020

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call