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Risk Allocation

Indemnities (uncapped or one-way)

An indemnity is a promise to cover the other side's losses, and a broad one can dwarf what you were paid, for example thousands of pounds of fee against a claim many times larger. The safest versions are mutual, tied to your own fault, and limited to third-party claims rather than 'any and all' losses. Whether the indemnity sits inside your liability cap makes a big difference to your real exposure.

What to look for

Whether the freelancer must indemnify (fully reimburse) the client for claims, and how broad that is. Look for uncapped indemnities, one-way indemnities (only the freelancer gives one), and indemnities covering 'any and all' claims rather than being tied to the freelancer's own fault.

How Clause rates it

RedA broad, uncapped, one-way indemnity for 'any and all claims, damages or losses', which can expose a freelancer to liability far larger than the whole project fee and unrelated to their own wrongdoing.
AmberAn indemnity that is one-way or not clearly limited, but is at least tied to the freelancer's breach or the freelancer's IP; check whether it sits inside or outside the liability cap.
GreenA narrow, mutual indemnity limited to third-party claims caused by the giving party's own breach or infringement, and subject to the overall liability cap where appropriate.

Wording you can ask for

Suggested redline 
Each party shall indemnify the other against third-party claims to the extent caused by the indemnifying party's breach of this agreement or infringement of a third party's rights. This indemnity is subject to the limitation of liability clause.

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