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First Healthcare Compliance CONNECT September 2022

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hold harmless or safe, harmless. So, let’s step back<br />

for a moment. So typically, first, before you draft an<br />

indemnification provision, you want to make sure<br />

that you have an appreciation of a variety of different<br />

state laws, whether it is derived from common law,<br />

or whether it is like California set forth in a statute.<br />

Typically, the way a lot of indemnification provisions<br />

are written are to indemnify defend and hold<br />

harmless. And if you don’t have that exact language,<br />

depending on the jurisdiction that you’re in, you may<br />

or may not have to defend someone and pay for<br />

those costs.<br />

You asked me how I would draft one of these. And<br />

it’s so specific to the facts and circumstances<br />

in general that I’m trepidatious just to throw out<br />

any language surrounding that, but I will say that<br />

it’s important to appreciate the significance of an<br />

indemnification provision and some indemnification<br />

provisions. I read and I’m like, “Oh my gosh, I would<br />

not advise anyone to sign that it’s because it’s so<br />

one sided, that only one party is held harmless.’ And<br />

in the event of a breach regardless of whether or not<br />

for example, a business associate cause the breach<br />

some of these endemic indemnification provisions<br />

read that the business associate is responsible for all<br />

of the costs. So that should be one of the provisions<br />

that any person reads very, very carefully, because<br />

it could contradict with your other contracts that you<br />

have in place.<br />

B, you could be shouldering all of the liability even if<br />

you’re not responsible for the breach or the bad act.<br />

When I write them, I typically make them mutual that<br />

if one is being indemnified, the other one’s going to<br />

indemnify if they’re at fault. So mutual defend is the<br />

key term that I discuss with the party. And typically,<br />

the party will go back to the other entity if they are<br />

in a negotiation. And oftentimes, they’ll say, “You<br />

know what, we’ll just agree to be responsible for<br />

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10<br />

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