Unlimited liability

Typical wording

The customer shall indemnify the supplier against all claims, losses and costs arising from the customer's use of the service.

What it means

You take on the other party's costs with no upper limit if a claim arises on your side of the relationship.

Common practice

A one-sided indemnity with no cap is unusual in balanced agreements. Where it is used, it is normally limited to specific types of claim, for example a claim that content you have uploaded infringes someone else's rights.

What to look for

• Is the obligation limited to specific claims, or does it cover "all claims"?
• Is there a monetary cap or a time limit?
• Do you control the defence of the claim, or can the other party settle at your expense?

Source