Wednesday, April 27, 2011

Indemnity 101: Educational Article for LIA Insured Appraisers and READI Members

"We field many questions from appraisers about contractual indemnification clauses. The purpose of this article is to give appraisers an understanding about what indemnification is and how it works. Though indemnification clauses are not new to contracts in the appraisal industry, they have become more widespread in the last several years. As the mortgage crisis has unfolded, businesses in the industry have become more keenly aware of their liability risks and more likely to try to shift such risks by using indemnification provisions. As a result, both residential and commercial appraisers need to be prudent about what they agree to with regard to indemnification in their various agreements.

Before we consider some indemnification clause examples from actual appraiser agreements, let’s answer two basic questions:"
This article is now available to LIA insured appraisers and READI members at readimember.org.  Free registration and membership in READI are required to access that material and other articles/reviews because we seek to limit access to the information to our insureds and fee appraisers with a sincere interest in loss prevention.  Information about how to register with READI is available at readimember.org