You Break It; I Buy It. The Curious Case of Knock-for-Knock Indemnities
Article from: OGEL 1 (2018), in Contract Management, International Petroleum Contracts
Summary
Conventional indemnities manage and allocate risks between parties by protecting each party from losses suffered as a result of breach of contract, breach of statutory duty or negligence of the other party. Liability of a party to indemnify for property damage, personal injury and economic loss will be triggered typically upon causation being established between acts or omissions of the indemnifying party and loss suffered by the indemnified party. In the offshore engineering and construction industry, however, a seemingly counter-intuitive mechanism known as knock-for-knock indemnity is ...