A few years ago I noticed that many web sites require indemnification as a part of their terms and conditions for using the site. I looked up just what that really meant and in essence it means you are insuring them for their losses as stated in the agreement. That wouldn't be so bad as long as it was limited to something you were responsible for, but often the clause is worded so broadly that literally any loss could be claimed as relating to your use of their web site. They go further and include as covered all of their employees, officers and nearly any other company that has a business relationship with them.
So there became a few web sites I didn't use because I didn't feel like opening myself up to the liability even if it was a very small risk.
More recently I have read the electronic terms and conditions on devices. They have similar waivers of liability, but now I found one that has an indemnification clause as well. So every time I turn on the GPS receiver in my car I am required to provide liability insurance to Garmin. I am considering returning the unit to the store.
Yes, I know there is only a small risk that this clause would ever be needed. But the consequences could be enormous. For example, I could be in an auto accident and knowing that only a limited amount of money could be extracted from me, they could name Garmin in the suit claiming that the GPS was somehow connected with the accident. At that point, even if we prevail and no money is recovered by the plaintiffs, Garmin could require me to compensate them for their legal expenses. Likely I would have a very hard time covering that. Should the plaintiffs win their claim, the result could easily be that I am bankrupted by this. Plaintiffs are much more likely to win when the defendant is a company compared to an individual with limited resources.
Has anyone else given any thought to the seeming pervasive requirement for indemnification?