company indemnified parties
Definition
This phrase refers to a specific group of people and entities that a contract promises to protect from certain financial losses or legal claims. When you sign an agreement that includes this language, you are typically agreeing to pay the legal costs, damages, or settlements if someone in this protected group gets sued because of something connected to your actions or your business. The group usually includes the company you are contracting with, plus its owners, officers, employees, and sometimes its affiliates.
Example
If you sign a vendor contract with a retail chain and their customer trips over your display and sues the retailer, the indemnification clause may require you to cover the retailer's legal fees and any payout because the retailer and its employees are the company indemnified parties.
Watch Out
Before signing any contract with this language, make sure your business insurance actually covers the types of claims you are promising to pay for, because you could end up personally on the hook for very large amounts if your coverage has gaps.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.