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Sean, Experienced lawyer
Category: Australia Law
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Experience:  Law degree with 1st class honours from Australian National University.
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Hello. I am a private consulant working in the Horticultural

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Hello. I am a private consulant working in the Horticultural industry. Recently I have been interested in a job overseas, but working for a company based in Australia.
In the consultancy agreement there is the clause: "Consultant shall indemnify and hold harmless Company, its directors, officers and employees, from and against any and all liabilities, claims, damages, costs and expenses (including attorneys’ fees) arising out of or resulting from any claim, action, or other proceeding, based upon Consultant’s acts or omissions in connection with the performance of its obligations herein".
Can you clarify the meaning of this clause?

Hello and thank you for your question.

This clause is to cover the company in the event that someone brings a claim against them for something you do (or don't do) in your capacity as a consultant. If someone sues the company for this, the company will then be able to sue you and require you to pay any damages, costs etc related to the claim. It means that full responsibility with rest with you, rather than the company.

Usually a consultant would hold appropriate insurance to cover them in the event that such a claim is made. You want to make sure that the insurance coverage covers claims by the company, as well as by third parties, to ensure you are covered in the event that this occurs.

Please let me know if you need any more information.

Customer: replied 3 years ago.
Thanks Shaun. my wife and I have set up a company of which we are directors. we have worked in this business for some years in various countries. the current agreement is between a Horticultural service and investment company and my company. My company is a service provider and has no assets. If there was any litigation, would only my company be liable, or me personally? I take your point about insurance and will look into this presently.

Hi Pete,
If you are working on behalf of your company this will give you much more protection, because if they want to sue you they will only be able to sue the company and not come after your assets personally. There are very few circumstances were they would be able to come after you personally, eg trading insolvently or criminal conduct.
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