Despite their use in both business and personal transactions, indemnity agreements come with several limitations.
These agreements can be difficult to enforce in a court of law, and their effectiveness varies greatly based on jurisdiction.
On top of those restrictions, the agreement may not cover all losses or damages that might be incurred, especially if they are limited in scope or the liability is capped in some way.
Finally, because these agreements shift responsibility between parties, they can be costly to negotiate and finalize.