Deductible Indemnity Agreement Template for England and Wales

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Key Requirements PROMPT example:

Deductible Indemnity Agreement

"I need a Deductible Indemnity Agreement for our manufacturing company where we agree to indemnify our main distributor subject to a £50,000 deductible, with quarterly payment terms and specific provisions for product liability claims."

Document background
The Deductible Indemnity Agreement is designed for situations where parties need to establish clear terms for risk allocation with a deductible component under English and Welsh law. This document is particularly relevant when businesses want to structure their risk management approach while maintaining some level of self-insurance through a deductible. The agreement typically includes detailed provisions on deductible calculations, claim procedures, payment mechanisms, and any required security arrangements. It's commonly used in commercial relationships where parties need to balance risk transfer with cost-effective risk retention.
Suggested Sections

1. Parties: Identification of the contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Deductible Amount: Specification of the deductible amount and calculation method

5. Indemnity Obligations: Core indemnity provisions and scope

6. Payment Terms: Terms and timing of payments

7. Claims Procedure: Process for making and handling claims

Optional Sections

1. Security Provisions: Additional security requirements when financial security is required

2. Insurance Requirements: Specific insurance obligations when particular insurance coverage is required

3. Dispute Resolution: Specific dispute resolution procedures when standard court jurisdiction is not preferred

Suggested Schedules

1. Schedule 1 - Calculation of Deductible: Detailed methodology for calculating the deductible

2. Schedule 2 - Claims Procedure: Detailed steps and requirements for claims process

3. Schedule 3 - Form of Notice: Template for formal notices under the agreement

4. Appendix A - Security Documents: Forms of any required security documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries
Relevant Teams
Relevant Roles
Industries

Contracts Act 1999: Primary legislation governing contract formation and enforcement in England and Wales

Third Parties (Rights Against Insurers) Act 2010: Legislation governing the rights of third parties in insurance and indemnity contexts

Insurance Act 2015: Key legislation reforming insurance contract law, including duty of fair presentation and remedies for breach

Financial Services and Markets Act 2000: Regulatory framework for financial services including insurance and indemnity provisions

Common Law Contract Principles: Fundamental principles governing contract formation, including offer, acceptance, consideration, and intention to create legal relations

Doctrine of Indemnity: Legal principle establishing the basis for compensation and restoration to original position

Contribution and Subrogation Principles: Legal principles governing rights of recovery and assumption of rights between parties

Duty of Utmost Good Faith: Principle of uberrima fides requiring highest degree of honesty and fairness in insurance/indemnity contracts

FCA Regulations: Financial Conduct Authority regulatory requirements for financial services and insurance contracts

PRA Requirements: Prudential Regulation Authority requirements ensuring financial soundness of insurance providers

Insurance Distribution Directive: EU-derived regulations governing insurance distribution and customer protection

Unfair Contract Terms Act 1977: Legislation controlling unfair terms in contracts and limiting ability to exclude liability

Consumer Rights Act 2015: Protection for consumers in contracts, including unfair terms provisions

Data Protection Act 2018: Legislation governing handling of personal data, including UK GDPR requirements

Limitation Act 1980: Statutory time limits for bringing legal claims and enforcement actions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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