Q: Are indemnification clauses common in personal injury settlement agreements?
Indemnification, it says if the insurance company or their driver gets sued by anyone related to my injuries , such as medical provider or any other person or entity then I have to defend and reimburse the insurance company or driver for any further action or costs , including any attorneys fees . This clause is in addition to another clause that says I forever release and hold harmless the insurance co and driver and there's another clause that says lien clause where I have to swear that I have paid all medical providers and either have paid or will pay them out of my settlement money. The indemnification clause worries me the most . Is that usually included in settlement agreements? Also, they want me to sign a release with prejudice on the court action I started before I even sign the settlement agreement. What's to stop them from backing out of the settlement agreement once they have the release with prejudice form signed?
A:
Indemnification clauses (also known as hold harmless agreements) are standard in every release signed by a personal injury claimant. In fact, it would be shocking if the insurance company failed to include such a clause in the release.
In terms of of the court action, I assume you are referring to a dismissal with prejudice? That too is standard. Once the insurance company pays for settling a case, the personal injury claimant is required to dismiss his/her case with prejudice.
It would be exceptionally rare for the insurance company to attempt to back out of a settlement once a deal is reached. I have not seen that happen in 23 years of practicing law. The insurance company knows that if it tried such tomfoolery it would not only get sued for breach of contract, but a complaint would likely be filed with the Office Of Insurance and Safety Fire. A good happy medium is to sign the release but wait on filing the dismissal with prejudice until you receive the settlement check. That way if the check does not arrive you can file a motion with the judge seeking to enforce the settlement since the case will still be pending.
Tim Akpinar agrees with this answer
A: Indemnification clauses are not unusual. They do have certain risks and should be evaluated in each case.
Tim Akpinar agrees with this answer
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