Non-Insurance Clause Information
Indemnification or hold harmless clauses are a type of non-insurance transfer of liability to another party. These clauses are common in personal or professional service contracts with independent contractors. Their purpose assures that the contractor retains liability for its wrongs and protects, defends and reimburses the state of any claim directed against it due to the contractor's actions. These clauses are an important tool in protecting the state from wrongs done by people who, for payment, offer their services as competent experts in their field.
Do not indemnify an independent contractor. The state is subject to the Oregon Tort Claims Act (OTCA),
ORS 30.260 to 300.The OTCA limits the state´s liability exposure. Independent contractors have unlimited liability. Indemnifying an independent contractor may make the state subject to unlimited liability.
Consult with your AG Counsel for additional indemnification clauses, or prior to changing template indemnity clauses.