Claims brought by third parties for which a party is entitled to be indemnified should be carved out from consequential damage disclaimers. ... However, a claim by a third party (and the defense of such claim) is likely to be classified as a consequential damage as to the indemnified party.
Does indemnity cover consequential loss?
Indemnities can cover a range of subject matters. The main ones are people (death, injury or illness), property damage and consequential loss.
What are examples of consequential damages?
Examples of Consequential Damages.
- Loss of anticipated profits;
- Loss of business;
- Cost of unsuccessful attempts to repair defective goods;
- Loss of goodwill;
- Losses resulting from interruption of buyer's production process;
- Loss of reputation; and.
- Loss of sales contracts because of delayed products.
