Insurance & LiensQuestion 1512 of 1632

In a hold-harmless agreement, the 'indemnitor' is the party that:

a.Issues the policy of liability insurance
b.Records the mechanics lien on the property
c.Is protected against the specified loss
d.Bears or reimburses the other's losses

Explanation

The indemnitor is the promisor: it agrees to assume, defend, or reimburse the indemnitee's specified losses. (c) is the indemnitee, and reversing the pair is the whole substance of this item. (a) is the insurer, which performs a comparable economic function under a policy rather than under the construction contract, and which is often what stands behind the indemnitor's promise. (b) belongs to the lien law. How far the promise can go is limited by Civil Code §2782, which makes indemnity for the promisee's sole negligence or willful misconduct void and unenforceable in a construction contract.

Law Reference: Civ. Code §2782

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