My Association is Responsible for What?!? The Good, Bad, and Ugly of Contractual Indemnity

“Indemnity” is a legal term of art which stands for the right of a party to claim reimbursement for its loss, damage, or liability from another party who has such a duty. Ordinarily, the duty to indemnify arises through express contractual agreement. The 2014 adoption of section 468.4334, Florida Statutes, has brought a spotlight to the concept of indemnity in the community association world. The new statutory provision provides guidelines regarding acceptable indemnity provisions in contracts between a community association manager (or management firm) and community associations. The purpose of this article is to discuss appropriate and inappropriate scopes of indemnification clauses in contracts entered by your association.