In the building industry, insurers often require builders to sign a counter indemnity as a prerequisite to the provision of insurance. What do builders need to know about this?

A counter indemnity effectively indemnifies the insurer against any losses that it may sustain that emanate from the builder’s acts, errors or omissions. Whoever signs the counter indemnity in effect becomes the insurer’s indemnifier. A counter indemnity is very much like a personal guarantee where the guarantor with respect to…