Hot take: my 'standard' indemnity clause just cost me $4,000

I had a contract for a website build with a marketing agency in Austin. Their boilerplate said I'd cover any legal costs if my work caused a problem. I figured it was normal. Then they used my code in a way that broke a third-party plugin, and the plugin company sued them. The agency invoked my clause, and I had to pay their $4,000 legal bill last month. I think these clauses are way too broad if they cover the other party's own mistakes, but my lawyer friend says they're just part of doing business. Has anyone else pushed back on this and gotten a more balanced clause accepted?

3 comments

3 Comments

tessalane2d ago

Used to think those were just standard too, but your story shows how they can really backfire.

kai8392d ago

My boilerplate once bit me too, guess we're in the same expensive club.

wood.jana1d ago

Wait, your boilerplate actually bit you? Like a physical injury? I pictured some legal fine print messing up a contract, not a piece of metal taking a chunk out of someone.