Indemnity

• Under common law, every person is responsible for his own actions and the liability that results. An indemnity clause, therefore, broadens a person's liability beyond common law standards. An indemnitor is the person that agrees to bear the liability and the indemnitee is the person that benefits from the clause. Depending on the type of indemnity clause, an indemnitor could incur liability for his negligence and the negligence of the indemnitee, for the passive (non-active) negligence of the indemnitee or only for his negligence if the indemnitee or another party is responsible for the negligent act. In California, a person cannot indemnify another person for his sole negligence or willful omission.
  
  

Endorsement

• An endorsement is a document used to change an insurance policy. It can add coverage, restrict coverage or include an additional insured. Once added, the endorsement becomes a part of the insurance policy.
  
  

Additional Insured

• An additional insured is a person or company added to a policy. The addition of another party, via an endorsement to an insurance policy, provides the named party with a specified amount of coverage. The extent of the coverage depends on the particular language of the endorsement. For example, the endorsement can provide coverage to the additional insured for liability that arises out of the named insured's operations or actions. The additional insured can make a claim under the insurance, if the language of the endorsement covers the type of liability.
  
  

Waiver of Subrogation

• Some contracts, particularly construction contracts and lease agreements, include a waiver of subrogation provision. Subrogation is the legal right of someone to collect on the claim or debt of someone else. An insurance company commonly uses the right of subrogation to recover the cost of a claim paid to a named insured from a party at fault. If a contract provides for the waiver of subrogation by you and your insurance company, the right of subrogation does not exist. The law in California allows a person and insurance company to waive subrogation rights via an endorsement.