Legal RiskAugust 10, 2026 · 6 min read

Unilateral vs Mutual Indemnification: Don’t Pay Client Legal Bills

Indemnification is one of the most heavily negotiated clauses in commercial law. Understand the difference between unilateral and mutual indemnity.

An indemnity clause requires one party to pay for financial losses or legal defense costs incurred by the other party.

The Danger of Unilateral Indemnity

Unilateral indemnity forces you to indemnify the client for any legal dispute, even if caused by the client’s own negligence or improper instructions.

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