Speaking the Language of Indemnity

  Friday, April 8th, 2011 Source: Risk and Insurance

Most states recognize two means by which negligent parties, referred to as "tortfeasors," can share liability. Contribution makes two or more "joint tortfeasors" liable for their proportionate share of liability. Indemnity allows potential tortfeasors to assign liability between themselves. Indemnity may be implied, if certain criteria, which vary by state, are met. Under implied indemnity, one tortfeasor may be held liable for damage assessed against a second tortfeasor if such damages are derived solely from the wrongdoing of the first tortfeasor.

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