Specialist Indemnity Clause Lawyers for Australian Businesses
A broad indemnity is a promise to cover another party’s losses, and when it is drafted widely it can expose a business to claims far beyond what it expected when it signed. Indemnities often appear in standard terms and are easy to overlook, but they can allow a party to recover its costs and losses without having to prove the breach of contract that would normally be required. When a claim is made, the wording of the clause decides who bears the loss. We advise businesses across Australia on indemnity clauses and the disputes that arise under them.
Our team has deep experience reviewing, negotiating and disputing indemnities in commercial contracts. We assess the clause and the risk early, advise on realistic outcomes and pursue the path most likely to protect our client’s interests, whether that’s narrowing the exposure, defending a claim or enforcing an indemnity owed to us. Fixed-fee options are available for defined stages of a matter, and we act nationally from offices in Melbourne, Sydney, Brisbane and Perth.
Indemnity Clause Review
We review contracts to identify broad or one-sided indemnities before you sign or when a claim arises.
Indemnity Negotiation Advice
We advise on narrowing, capping and balancing indemnities so the risk matches the deal.
Indemnity Claim Defence
We defend businesses facing claims under broad or poorly drafted indemnity clauses.
Enforcing Indemnity Claims
We act for businesses seeking to recover losses and costs under an indemnity.
Indemnity & Liability Cap Interaction
We advise on how indemnities interact with liability caps, exclusions and insurance.
Negotiation, Mediation & Litigation Support
We resolve indemnity disputes through negotiation and mediation where possible, and litigate when necessary.
Our Services
- Unlimited Liability
- Contract Disputes
- Breach of Contract Claims
- Ambiguous Contractual ObligationsÂ
- Supplier and Contractor Issues
- Corporate and Commercial Litigation
- Dispute Resolution Services
FAQs
An indemnity clause is a contractual promise by one party to compensate the other for specified losses, costs or liabilities. It is broad when it covers a wide range of losses, applies regardless of fault, or has no cap, which can leave the indemnifying party responsible for far more than it expected.
Allied Legal reads the clause closely to identify exactly what it covers and how far your exposure extends, so you know where you stand before a claim is made.
A claim for breach of contract generally requires proof of a breach and of the loss it caused. An indemnity is a separate promise to cover loss, and depending on how it is worded it may allow recovery without proving a breach in the usual way.
Allied Legal assesses whether a claim is better pursued, or defended, as an indemnity claim or as a breach of contract claim, and advises accordingly.
Often, yes. Common approaches include limiting the indemnity to specific losses, excluding losses caused by the other party, adding a financial cap and requiring the other party to mitigate. What can be achieved depends on the bargaining position of each side.
Allied Legal negotiates indemnity terms on your behalf, aiming for protection that is commercially realistic and acceptable to the other party.
Review the clause and any notice requirements first, notify your insurer promptly, preserve records and avoid admitting liability until you have advice. Whether you are required to pay, and how much, depends on the wording and the facts.
Allied Legal assesses the claim and the extent of your obligation, then defends or negotiates it to limit the financial impact on your business.
Not automatically. Whether an indemnity sits inside or outside a liability cap depends on how the contract is drafted, and the answer can significantly change the size of a claim.
Allied Legal reviews how the indemnity and liability provisions work together and advises on how to rely on, or resist, the interaction.
Ideally before you sign, since indemnities are much easier to negotiate before the contract is in force. If a claim has already been made, early advice is still the best way to protect your position.
Allied Legal reviews your contract promptly and recommends the next steps to protect your business.
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