Liability

Indemnification and Liability

Who pays legal costs if something goes wrong, and the cap on how much each side can owe.

Why it matters

Indemnity clauses decide who pays if someone sues over the content. A one-sided clause can make a creator responsible for claims about the brand’s own product, far beyond the fee.

How it usually reads

Each party will cover claims caused by its own breach. Brand will cover claims about its products and the claims it provided.

What fair looks like

  • Mutual: each side covers claims caused by its own actions.
  • The brand covers claims about its product and the claims it asked you to make.
  • A cap on liability, often the fee paid.

Red flags

  • Creator shall indemnify, defend and hold harmless Brand from any and all claims

    You cover everything, including problems with the brand's product.

  • liquidated damages

    A fixed penalty you owe, sometimes larger than your fee.

Common questions

Should I accept unlimited liability?

Rarely. A common cap is the total fee paid under the agreement, with exceptions for things like intentional misconduct.