Analysis on Indemnity and Insurance Interaction

Allocation and share of Contractual liability is one of the important issues of contract law which consuming lots of time in negotiation area. According to the primary principle everybody is liable for its faults, but complicated contracts in oil and gas industry has passed this boundaries and by contractual terms transfer the liability to the other party or third party (insurance company)these levels of risk allocation which referred to indemnity and insurance clauses in contracts are mechanisms prevent project costs related to insurance and minimize the contractual controversies which may hold the project advancement. The interaction between indemnity and insurance and dependency of them makes to be analyzed together.