Emerging tech companies face many uncertainties. On the one hand, it’s an exciting environment with eager investors and an expanding market receptive to new high-tech solutions. But there are also risks from cyber disruption, potential product liability claims, and less than trustworthy vendors. Don’t get caught without adequate protections.
Indemnification agreements. Carefully drafted indemnity provisions in your contracts with vendors and other third parties, including suppliers and large customers, can go a long way to protecting your business against various risks that are out of your control. When a claim arises, you will want the indemnitor to step in to address issues as seamlessly as possible. Close attention to the details of your agreements is critical. Don’t rely on standard form provisions that are not tailored to your business. If a dispute arises, you will want to make sure, for example, that you are not bogged down by unfavorable choice-of-law or dispute-resolution provisions. These should be addressed in advance. Keep in mind that an indemnity agreement is only as good as the indemnitor who signs it. If the indemnitor is insolvent or unwilling to step up, then your business is on its own. Insurance is the only way to provide that additional security. Continue Reading Protecting Your Emerging Business