What is knock for knock indemnity?

What are knock-for-knock indemnities? A knock-for-knock clause is a reciprocal agreement to apportion liability for certain losses (usually, death or injury to personnel and damage to property) between contracting parties, supported by mutual indemnities.

What damages does the knock for knock regime cover?

Voluntary Knock for Knock Agreement A collision or attempt to avoid collision resulting in damage to motor Vehicle in connection which indemnity is granted by either or both parties to this agreement, each party to this agreement shall bear its own loss within the limits of this policy, except the legal liability.

What is a fault based indemnity?

Fault-based. A fault-based indemnity allocates risk for loss to the party that was at fault. While a fault-based regime more closely mirrors what a party would be typically liable for (at law), the indemnity can cover losses (such as legal fees) that might not otherwise be recoverable.

What is back to back indemnity?

Back to back indemnities seek to provide indemnity and hold harmless arrangements across the length of the contractual chain consisting of “contractors” that are in direct contractual relationships with the lead contractors operating on the platform but not with the operator.

Why is it called knock for knock?

The phrase ‘knock for knock’ is thought to have arisen in the U.S. car insurance industry in the early 20th Century. Automobile insurers found that they could pay for their customers’ car repairs, then spend years arguing with attorneys as to which party was at fault.

What is a mutual hold harmless clause?

Often found in oil and gas operations, the mutual hold harmless means that each party agrees to pay for damage to their own property and injury to their own personnel, including any consequential losses.

What are the types of indemnity?

There are basically 2 types of indemnity namely express indemnity and implied indemnity.

Why should a contractor be back to back with a head contractor?

It’s common in the construction industry for the main contractor to engage the services of a subcontractor to complete all or part of a particular project for a client. The client usually requires that the head contractor is liable for the full extent of the work for the project.

What is a back to back subcontract?

A simple back-to-back subcontract for use in commercial situations when the main contractor wishes to subcontract all or part of its obligations under a main contract on a back-to-back basis. The agreement incorporates the terms of the main contract by reference.

What is knock for knock for knock indemnities?

Knock for knock indemnities A different way of allocating risk is to use ‘knock for knock’ or ‘mutual hold harmless’ indemnities. These are common in the oil & gas and offshore sectors. Instead of taking a fault- based approach, each party agrees to take the risk of damage to its own property, people and more.

What is knock-for-knock liability regime?

knock-for-knock regime replaces the fault-based liability regime that would otherwise apply at law with the concept that ‘loss lies where it falls’. They are a common risk allocation mechanism in the offshore oil and gas industry utilised to provide certainty and prevent recourse against other parties.

What is the purpose of a knock-for-knock clause?

The clause makes each party responsible for any claims or costs related to deaths or injuries to their own workers as well as property damage to their own property. Each party is solely responsible for its own personnel and property, often without regard to negligence, fault or cause. What does a knock-for-knock clause typically contain?

What can a party indemnify the other against?

So for example each party will indemnify the other against claims in respect of any: • death of, or personal injury to, the party’s own employees; • loss of, or damage to, the party’s own property; and • pollution emanating from the party’s own property.