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DearCustomer- This means that you are accepting responsibility for your actions as a subcontractor and that if the Agency is sued as a result of something you do you are agreeing to cover any losses they may have as a result. You are basically guaranteeing that you are insured and will cover any losses from any suits arising out of your work.
So this is a common contractual clause for a physician independent contractor and many physicians sign such contracts as long as they have malpractice insurance and general liability insurance?
Yes, it is common in many contracts medical or otherwise. It say that if the agency is sued you will indemnify them for any losses that they may incur because of a suit against you. You may want to be certain that signing this contract does not affect your liability insurance so I would contact your carrier to be certain. Whatever answer you get from them get it in writing.