This paper addresses certain problems to be encountered when a blasting contractor agrees to provide indemnification. Nearly 100% of all blasting work is performed pursuant to a contractual agreement. Whether the explosives engineering firm works directly for the property owner, or for a general contractor by way of subcontract, indemnification agreements are generally required to protect owners, operators, general contractors, and other interested parties in the event there is subsequent litigation. These contractual requirements are typically referred to as indemnification and "additional insured" agreements. We will address the ramifications of contractual indemnification as well as "additional insured" agreements in this presentation. Some of the aspects of this paper will include: What is indemnity? Indemnity is defined as an obligation "to restore a victim of a loss, in whole or in part, by payment, repair, or replacement". Like most legal terms, the word indemnify comes from the Latin word "indemnis" which means to eliminate hurt, harm or damage. When an explosives company agrees to provide indemnification to the owner or general contractor on a project, it means that the blaster will literally "stand in the shoes" of the parties being indemnified. In addition to facing civil liability for anything that the blasting engineer does wrong, an indemnification agreement may obligate the explosives engineer to assume any liability of the other contract parties such as the owner or operator of a mine, quarry, construction or job site. Where does indemnification stop? Most explosives engineers will readily stand behind their work. If a blaster's act or omission creates damages to persons or property, then the applicable state law will impose civil liability. Where an indemnification agreement is involved, the blaster must also accept liability for the negligent acts and omissions of others. A blanket indemnification agreement could require an explosives engineer to defend a general contractor, project owner, mine owner, quarry operator, or other party for things that are out of the blasting engineer's control.
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