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Deductible Indemnity Agreement Template for Canada

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Key Requirements PROMPT example:

Deductible Indemnity Agreement

"Need a Deductible Indemnity Agreement for our construction company acting as indemnitor to a property developer, with a CAD 50,000 deductible per claim and specific provisions for environmental damage claims."

Document background
The Deductible Indemnity Agreement is essential in commercial relationships where parties need to establish clear risk allocation mechanisms while maintaining financial efficiency through deductible structures. This document is commonly used in Canadian business transactions where one party seeks to protect another against specific losses or liabilities, but with a threshold amount (deductible) that must be met before the indemnification takes effect. It's particularly relevant in scenarios involving ongoing business relationships, construction projects, service agreements, or corporate transactions where risk transfer is crucial. The agreement must comply with Canadian federal and provincial insurance regulations, contract law principles, and specific provincial requirements, especially when dealing with regulated industries or cross-provincial operations.
Suggested Sections

1. Parties: Identifies and defines the parties to the agreement - typically the Indemnitor (party providing indemnity) and Indemnitee (party receiving indemnity)

2. Background: Sets out the context and purpose of the agreement, including the relationship between the parties and the basis for the indemnification arrangement

3. Definitions: Defines key terms used throughout the agreement, including 'Deductible Amount', 'Claim', 'Loss', and 'Indemnified Events'

4. Indemnification Obligations: Details the scope and nature of the indemnification provided, including covered events and exclusions

5. Deductible Structure: Specifies the deductible amount(s) and how they apply to different types of claims

6. Claims Process: Outlines the procedure for making and handling claims, including notification requirements and timing

7. Payment Terms: Describes when and how payments should be made, including handling of the deductible portion

8. Representations and Warranties: States the parties' representations regarding their authority and capacity to enter into the agreement

9. Term and Termination: Specifies the duration of the agreement and circumstances under which it can be terminated

10. General Provisions: Standard contract clauses including governing law, notices, assignment, and amendments

Optional Sections

1. Multiple Deductible Tiers: Used when different deductible amounts apply to different types of claims or loss categories

2. Aggregate Limits: Include when there are caps on total indemnification amounts or aggregate deductible limits

3. Security Provisions: Required when collateral or security is provided to guarantee the indemnification obligations

4. Insurance Requirements: Include when specific insurance coverage must be maintained by either party

5. Dispute Resolution: Optional detailed procedures for handling disputes, including mediation or arbitration requirements

6. Third Party Claims: Include when the agreement needs to address claims involving third parties specifically

7. Subrogation Rights: Used when specifying rights to pursue claims against third parties

8. Currency Provisions: Include for cross-border agreements involving multiple currencies

Suggested Schedules

1. Schedule A - Deductible Amounts: Details the specific deductible amounts and any variations based on claim type

2. Schedule B - Claim Form Template: Standard form for submitting claims under the agreement

3. Schedule C - Covered Events: Detailed list of events or circumstances covered by the indemnification

4. Schedule D - Claims Handling Procedures: Detailed procedures for processing and managing claims

5. Schedule E - Contact Information: List of key contacts and their roles for both parties

6. Appendix 1 - Required Documentation: Lists the documentation required for different types of claims

7. Appendix 2 - Reporting Templates: Standard formats for required periodic reporting under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






































Clauses






























Relevant Industries

Insurance

Construction

Manufacturing

Professional Services

Energy

Transportation

Healthcare

Real Estate

Financial Services

Technology

Mining

Infrastructure

Relevant Teams

Legal

Risk Management

Finance

Compliance

Insurance

Treasury

Operations

Corporate Development

Claims Processing

Procurement

Relevant Roles

Risk Manager

Legal Counsel

Chief Financial Officer

Insurance Manager

Compliance Officer

Contract Manager

Chief Risk Officer

Claims Manager

General Counsel

Corporate Secretary

Business Development Director

Operations Director

Treasury Manager

Financial Controller

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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